Which Inventory Method Is Not Allowed Under IFRS

question 1

Multiple Choice

Which inventory method is not allowed under IFRS?

• A)FIFO
• B)LIFO
• C)Lower of Cost and Market Method
• D)Periodic inventory method

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Definitions:

Specific Process

A defined sequence of activities or steps designed to achieve a particular outcome, often unique to a particular field or industry.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Direct Labor

The wages or salaries paid to employees who are directly involved in producing goods or providing services.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, rent, and salaries for managers.