Which inventory costing method is prohibitedunder IFRS?a) FIFOb) LIFOc) Weighted averaged) Specific identification

Explanation of FIFO: The First-In, First-Out (FIFO) inventory costing method assumes that the oldest…

Answered: Which inventory costing method is…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

ChapterC: International Financial Reporting Standards (ifrs)

Section: Chapter Questions

Problem 7DQ

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Similar questions

Why do consignment arrangements present a challenge in inventory management? Explain.
What is the purpose of disclosing the difference between the reported LIFO inventory amounts and replacement cost, assuming that replacement cost is equivalent to a FIFO basis?
Under which of the following inventory costing methodologies can lower-of-cost-or-market be used? O FIFO LIFO Weighted average Specific identification
Explain the lower of cost or market rule for inventory valuation and explain why it is GAAP.
Which of the following inventory method measures most closely the current cost of inventory? a. FIFO b. LIFO c. Weighted average d. Specific identification
Briefly explain the usefulness of the inventory figure resulting from the application of lower of cost and net realizable value
Which inventory costing method produces a more accurate balance sheet – FIFO or LIFO? ______________ Provide brief explanation.
The most common approach to implementing the lower of cost or market rule for inventory valuation is to apply it a. separately to each item of inventory b. to each major category inventory c. to the total inventory d. in a combination of the above methods
Which U.S. GAAP principle or rule would apply if the net realizable value of acompany’s inventory is below its original cost?a. Lower-of-cost-or-market ruleb. Consistency principlec. Disclosure principled. Historical cost principle
IFRS and GAAP are similar for all of the following inventory accounting standards except IFRS a)require the same cost flow assumption for all inventories that are similar in nature and use b)do not allow the inclusion of overhead in inventory c)have provisions for use of the LIFO cost flow assumption d)exclude the weighted average approach to inventory valuation
Which of the following is not considered in determining FIFO unit cost? A. Equivalent unit of production in ending inventory. B. Equivalent unit of production in beginning inventory. C. Units completed. D. Cost of beginning inventory.
Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________ Provide brief explanation.

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Which inventory costing method is prohibited under IFRS? a) FIFO b) LIFO c) Weighted average d) Specific identification