Under IFRS,inventory Write-Downs Due to Using the Lower-Of-Cost-Or-Market Rule Are

question 36

True/False

Under IFRS,inventory write-downs due to using the lower-of-cost-or-market rule are allowed to be reversed in a future year if the market value subsequently increases.

---

Definitions:

Direct Labor Hour

The amount of time spent by workers directly manufacturing a product or providing a service, often used in costing and operational efficiency analysis.

Molding Department

A specialized manufacturing sector responsible for shaping materials using rigid frames or models called molds.

Overhead Rate

A measure used to allocate the costs of indirect expenses to specific cost objects based on a certain base, such as labor hours or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or company to allocate indirect costs to cost objects.