IFRS requires the use of direct costing for inventories.

Name: IFRS requires the use of direct costing for inventories.
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IFRS does not require the use of direct costing for inventories. Instead, it allows both the use of the traditional absorption costing method and the variable costing method. The choice of method depends on which best represents the company's inventory and production process.

IFRS Requires the Use of Direct Costing for Inventories