please quickly thanks !give me correct answer !single c
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please quickly thanks !give me correct answer !single choice!

Transcribed Image Text:Which of the following is NOT true regarding IAS 2 Inventories?
Fixed production overheads must be allocated to items of inventory on
the basis of the normal level of production
Plant lying idle will lead to a higher fixed overhead allocation to each
unit
The factory management team is a fixed overhead that relates to the
production of inventories
Variable production overheads are allocated to each unit on the basis of
the actual usage of production facilities
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