How Do Both Australian and International Standards Require Inventory to Be

question 45

Multiple Choice

How do both Australian and International standards require inventory to be valued?

• A)at full cost.
• B)at variable cost.
• C)at manufacturing full cost.
• D)at direct cost.

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Definitions:

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used.

Materials Price Variance

The difference between the actual cost of materials purchased and the standard cost, multiplied by the quantity of materials acquired.

July

The seventh month of the year in the Gregorian calendar, known for marking the midpoint of the calendar year.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials used.