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.

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Definitions:

Keyboard

A hardware device used to enter typed data and commands into a computer.

Touch Screen

A type of monitor (or display in a smartphone or tablet computer) that accepts input from a user touching the screen.

Embedded Computers

Special-purpose computers embedded within electronic devices, meant to control its functions and operations.

Computer Chips

Small electronic circuits used in computers and other devices, containing millions of microscopic transistors, to perform calculations and store data.