Inventory Accounting Under IFRS Differs from GAAP in Regard to

question 61

Multiple Choice

Inventory accounting under IFRS differs from GAAP in regard to

• A)neither the use of LIFO nor lower-of-cost-or-market.
• B)the use of LIFO but not lower-of-cost-or-market.
• C)the use of lower-of-cost-or-market but not LIFO.
• D)the use of LIFO and lower-of-cost-or-market.

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Definitions:

Budgeted Purchases

Projected expenditures for goods or services during the budget period, often used in planning an organization's operations.

Budgeted Sales

The anticipated revenue from goods or services a company plans to sell over a certain period, based on forecasts.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the cost associated with these materials for a specific period.

Cash Payments

Outflows of cash to settle obligations or purchase goods and services.