Which of these is not one of the areas where major judgement is required in accounting for inventory?
A) deciding when to apply the 'lower of cost and net realisable value' rule
B) the choice of costing method (FIFO, weighted average, etc.)
C) counting the inventory items when carrying out a stocktake
D) None of the above, i.e. all require major judgement.

Question

Quizplus · Accepted Answer

Counting the inventory items during a stocktake is a straightforward process that does not involve significant judgement. However, deciding when to apply the 'lower of cost and net realisable value' rule and the choice of costing method both require professional judgement and can significantly impact a company's financial statements.

Which of These Is Not One of the Areas Where