IFRS Specifies That, in the Context of Inventories, Market Means

question 34

Multiple Choice

IFRS specifies that, in the context of inventories, market means

• A)replacement cost, only.
• B)net realizable value, only.
• C)replacement cost, except that market may not exceed net realizable value and may not be less than net realizable value reduced by a normal profit margin.
• D)replacement cost, except that market may not exceed net realizable value and may not be less than present value of future cash flows.
• E)replacement cost, except that market may not exceed net realizable value and may not be less than the total amount of undiscounted future cash flows.

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Definitions:

Elastic

Describes a situation in which the demand or supply for a good or service changes significantly when its price changes.

Inelastic

A situation in which the demand or supply for a product does not change significantly in response to price changes.

Fixed Productive Capacity

The maximum output that an economy can produce without increasing inflation, assuming resources are fully utilized.

Chocolate

A sweet, typically brown food preparation of roasted and ground cacao seeds.