When Calculating Cost of Inventory AASB 102 Requires Which of the Following

question 71

Multiple Choice

When calculating cost of inventory AASB 102 requires which of the following costs are to be excluded?

• A) abnormal amounts of wasted materials
• B) selling costs
• C) administrative overheads
• D) All of the given answers should be excluded.

Identify the different items that do not belong on the statement of cash flows.

Recognize the importance of noncash investing and financing activities.

Understand the adjustments made to net income in calculating net cash flow from operating activities.

Know the last items to be reported on the statement of cash flows.

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Definitions:

Normal Curve

The normal curve, or bell curve, is a graphical representation of a normal distribution, showing how data points are dispersed or spread out across the mean.

Standard Scores

Standard scores are a type of score that have been transformed to fit a normal distribution, with a mean of zero and a standard deviation of one, allowing comparison across different tests or assessments.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group of observations fall.

Percentage

A portion in relation to the whole. A ratio between two dichotomous outcomes.