Which of the following statements is correct in relation to the costing of inventories?
A) Direct costing treats fixed production costs as an expense of the period and is not permitted as a method for valuing inventories under AASB 102.
B) Absorption costing treats fixed production costs as a product cost, allocating them to the goods produced, and is not permitted as a method for valuing inventories under AASB 102.
C) Absorption costing treats fixed production costs as an expense of the period and is the required method for valuing inventories under AASB 102.
D) Direct costing treats fixed production costs as a product cost, allocating them to the goods produced, and is not permitted as a method of valuing inventory under AASB 102.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct in relation to the costing of inventories?
A) Direct costing treats fixed production costs as an expense of the period and is not permitted as a method for valuing inventories under AASB 102.
B) Absorption costing treats fixed production costs as a product cost, allocating them to the goods produced, and is not permitted as a method for valuing inventories under AASB 102.
C) Absorption costing treats fixed production costs as an expense of the period and is the required method for valuing inventories under AASB 102.
D) Direct costing treats fixed production costs as a product cost, allocating them to the goods produced, and is not permitted as a method of valuing inventory under AASB 102.
E) None of the given answers.

Which of the Following Statements Is Correct in Relation to the Costing