The FASAB Allows Entities to Value Inventories Held for Sale

question 12

Multiple Choice

The FASAB allows entities to value inventories held for sale at which of the following values?

• A) Historical cost, using FIFO.
• B) Historical cost, using weighted average.
• C) Latest acquisition cost.
• D) All of the above.

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Definitions:

Delivery Date

The specified date by which a product or goods should be delivered to the receiver or buyer.

Output Contract

A legal agreement in which the seller agrees to sell all of its production to a particular buyer, who in turn agrees to purchase the entire output.

Requirements

Conditions or specifications that must be met or complied with, often used in the context of projects, jobs, or legal agreements.

Uniform Computer Information Transactions Act

A proposed state law aimed at standardizing the rules and regulations governing the sale and leasing of computer information, software, and digital material across the United States.