The Specific Identification Method of Inventory Cost Formula Must Be

question 28

Multiple Choice

The specific identification method of inventory cost formula must be used

• A)for goods that are produced and segregated for specific projects.
• B)when goods are not ordinarily interchangeable.
• C)when high priced goods are purchased.
• D)for goods that are produced and segregated for specific projects, and/or when goods are not ordinarily interchangeable.

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Definitions:

Pro-Rata Share

A portion of something that is divided among participants in proportion to their share, interest, or contribution.

Proportionate Consolidation Method

A method of accounting where a parent company includes its share of the assets, liabilities, income, and expenses of a joint venture or associate in its financial statements proportionate to its ownership interest.

Identifiable Net Assets Method

An accounting technique used to value a company by identifying and valuing its tangible and intangible assets separately from goodwill.

IFRS

International Financial Reporting Standards are globally accepted standards for accounting, aiming at bringing transparency, accountability, and efficiency to financial markets around the world.