IFRS and GAAP Are Similar for All of the Following

question 60

Multiple Choice

IFRS and GAAP are similar for all of the following inventory accounting standards except IFRS

• A)do not allow the inclusion of overhead in inventory
• B)have provisions for use of the LIFO cost flow assumption
• C)exclude the weighted average approach to inventory valuation
• D)require the same cost flow assumption for all inventories that are similar in nature and use

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Definitions:

Financial Advantage

Financial advantage refers to the benefit obtained from making a financial decision that results in positive outcomes, such as cost savings or increased revenue.

Costs Associated

Expenses that are linked to a specific product, activity, or department within a business.

Special Order

An order for a product or service that is outside of the company's regular operations or production schedule, often requiring special pricing or conditions.

Excess Capacity

Refers to a situation where a company has more production capability available than is necessary to meet demand, often resulting in unused resources or facilities.