Describe the Differences in the Application of Lower of the Cost

question 74

Essay

Describe the differences in the application of lower of the cost or market consideration between U.S.GAAP and IFRS.

---

Definitions:

Standard Cost System

A cost accounting system that uses standard costs for products or services to compare against actual costs and analyze variances for management control.

Work In Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Fixed Overhead Costs

Regular, unchanged costs incurred by a business, regardless of its level of production or activity, such as rent and salaries.

Control Perspective

An approach focusing on the monitoring and adjusting of processes and strategies to achieve desired outcomes or objectives.