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:

Constrained Resource

A resource within a manufacturing or production process that limits the overall output due to its limited capacity.

Profitable Product

A product that generates more revenue than the costs associated with its production, marketing, and distribution.

Sufficient Time

Proper or adequate amount of time needed to complete a task or process.

Grinding Machine

A machine tool that uses an abrasive wheel as a cutting tool to shape or finish metals or other materials.