Which of the Following Statements Is INCORRECT Regarding the Overriding

question 161

Multiple Choice

Which of the following statements is INCORRECT regarding the overriding objectives underlying inventory standards?

• A) Report an inventory cost on the statement of financial position that is representative of the inventory's recent cost.
• B) Choose an approach that corresponds as closely as possible to the physical flow of goods.
• C) Use the same method for all inventory assets that have similar economic characteristics.
• D) It is permissible under ASPE to use any inventory method, including LIFO.

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Definitions:

Alkane

A saturated hydrocarbon consisting of carbon and hydrogen atoms with single covalent bonds.

Secondary Carbons

A carbon atom bound to two other carbon atoms within an organic molecule, often influencing the molecule's reactivity and physical properties.

Trimethylheptane

A saturated hydrocarbon with the formula C10H22; it’s a branched alkane used in organic synthesis and as a reference in octane rating.

Carbon Atoms

The basic building blocks of the vast majority of organic compounds, capable of forming strong covalent bonds due to their tetravalency.