The Measurement Rule for Inventories, Mandated by AASB 102 Inventories

question 16

Multiple Choice

The measurement rule for inventories, mandated by AASB 102 Inventories, is:

• A) lower of fair value and selling price;
• B) lower of cost and net realisable value;
• C) higher of initial cost and realisable value;
• D) higher of completion costs and replacement costs.

---

Definitions:

Global Compensation Strategy

The planning and implementation of compensation policies that align with global business objectives, ensuring fair and competitive pay across different geographies.

Home-Country System

The application of an expatriate's home country policies and practices regarding compensation and benefits while working abroad.

Wage Trend Lines

Graphical representations showing the direction and movement of wages over a period, indicating patterns or shifts in compensation.

Point Value

A quantitative value assigned to specific actions, achievements, or outcomes, often used in scoring systems or as a measure of performance.