In Computing the Lower-Of-Cost-Or-Market,under IFRS,the Market Value Is Defined as the Net

question 83

True/False

In computing the lower-of-cost-or-market,under IFRS,the market value is defined as the net realizable value,which is essentially the sales price.

---

Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.

Equivalent Units

A concept used in cost accounting to express the amount of work done on units of inventory in terms of fully completed units.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, which are incurred to convert raw materials into finished goods.

Work in Process

Work in process (WIP) is inventory that includes goods that are in various stages of the production process, partially completed but not yet ready for sale.