AASB 102 Requires That the Specific Identification Method of Assigning

question 38

Multiple Choice

AASB 102 requires that the specific identification method of assigning cost to items of inventory be applieD.

• A) Wherever possible in order to achieve the most accurate cost figure.
• B) To items of inventory that are ordinarily interchangeable or identical and have significant individual dollar value.
• C) Wherever items are separately identifiable and of significant individual dollar value.
• D) To items of inventory that are not ordinarily interchangeable or are produced and segregated for specific projects.
• E) None of the given answers.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, making it more useful for planning and controlling costs.

Client-Visits

The occurrence of clients or customers physically visiting a business premise for purposes such as consultation, purchase, or review of services.

Net Operating Income

A company's income after expenses, excluding taxes and interest, indicative of its operational profitability.

Planning Budget

A financial plan that outlines expected revenues, expenses, and resource allocations over a specific period, often used for decision-making and control.