Under IAS 2 Inventories, Items of Inventory That Are Used

question 17

Multiple Choice

Under IAS 2 Inventories, items of inventory that are used by business enterprise as components in a self-constructed property asset are required to be:

• A) aggregated into the 'cost of goods sold' expense in the period in which the items are used;
• B) expensed directly into equity in the period in which the items are used;
• C) capitalised and depreciated;
• D) added to a 'property construction' provision account.

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Definitions:

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Challenging Goal

An objective that is difficult to achieve but motivates individuals or groups to extend their efforts, skills, and strategies.

Productivity

A measure of the efficiency of a person, machine, system, etc., in converting inputs into useful outputs.

INAH3

Refers to the third interstitial nucleus of the anterior hypothalamus, a brain structure believed to play a role in sexual behavior and sexual orientation.