Inventories cannot be valued at standard cost in financial statements.

Name: Inventories cannot be valued at standard cost in financial statements.
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Question

Quizplus · Accepted Answer

Inventories can be valued at standard cost in financial statements. In fact, many companies use standard cost as a basis for valuing their inventories. However, if the standard cost is higher than the actual cost or market value, the inventory must be written down to the lower amount.

Inventories Cannot Be Valued at Standard Cost in Financial Statements