According to AASB 102,one or More of Which Set of Methods

question 12

Multiple Choice

According to AASB 102,one or more of which set of methods should be used to apply the costs of inventories to particular items of inventory?

• A) specific identification, LIFO or FIFO
• B) absorption costing, weighted average costing or LIFO
• C) FIFO, specific identification or weighted average cost
• D) weighted average costing, ABC costing or FIFO

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated as total assets minus intangible assets and liabilities.

Markup Percentage

It is a percentage added to the cost of a product to determine the selling price, reflecting the profit margin the seller aims to achieve.

Product Cost Method

An accounting method used to assign costs to inventory and cost of goods sold, including direct materials, direct labor, and manufacturing overhead.

Differential Cost

The difference in total cost between two alternatives in making a business decision.