Which of These Is Not an Acceptable Inventory Costing Method

question 27

Multiple Choice

Which of these is not an acceptable inventory costing method under IFRS?

• A)FIFO
• B)LIFO
• C)Specific Identification
• D)Average cost

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Definitions:

Credit Cost Curve

A graphical representation of the relationship between the cost of credit (interest rates) and the quantity of credit available in the market.

Collection Policy

Collection Policy is a set of procedures that a company uses to manage and collect payments from its customers, ensuring timely collection of receivables.

Aging Schedule

A tabulation of accounts receivable broken down by age, typically in 30-day increments, to assess the collectibility of the receivables.

Cash Discount

A reduction in the price of goods or services offered by the seller to the buyer for prompt payment.