Which of These Is Not One of the Areas Where

question 15

Multiple Choice

Which of these is not one of the areas where major judgement is required in accounting for inventory?

• A) deciding when to apply the 'lower of cost and net realisable value' rule
• B) the choice of costing method (FIFO, weighted average, etc.)
• C) counting the inventory items when carrying out a stocktake
• D) None of the above, i.e. all require major judgement.

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Definitions:

Rectangle

A quadrilateral with four right angles and opposite sides that are equal in length.

Perimeter

The total distance around the edge of a two-dimensional shape, measured by adding the lengths of all sides.

Interval

A range of values between two numbers including all the numbers in between.