Agricultural Activity Under the Heading of Biological Assets Such as Animals

question 16

Multiple Choice

Agricultural activity under the heading of Biological assets such as animals is most appropriately measured for accounting purposes at:

• A) standard value
• B) net realisable value
• C) discounted market value
• D) historical cost

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Definitions:

FIFO

"First In, First Out," an inventory valuation method assuming that the oldest items in inventory are sold or used first.

LIFO

A inventory valuation method where the last items added to inventory are the first ones sold, standing for "Last In, First Out."

Average Cost

A calculation of the total cost of goods available for sale divided by the total units available for sale, used to compute cost of goods sold in certain inventory valuation methods.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company.