According to AASB 102,one or more of which set of methods should be used to apply the costs of inventories to particular items of inventory?
A) specific identification, LIFO or FIFO
B) absorption costing, weighted average costing or LIFO
C) FIFO, specific identification or weighted average cost
D) weighted average costing, ABC costing or FIFO

Question

Quizplus · Accepted Answer

AASB 102 specifies that inventories should be valued at the lower of cost and net realisable value. To apply the cost of inventories to particular items of inventory, the following methods can be used: FIFO (first-in, first-out), specific identification, or weighted average cost. Therefore, option C is the best choice as it includes all three methods mentioned by AASB 102. Option A includes LIFO (last-in, first-out) which is not allowed under AASB 102. Option B includes absorption costing and ABC costing which are not methods for applying the cost of inventories under AASB 102. Option D includes ABC costing which is not allowed under AASB 102.

According to AASB 102,one or More of Which Set of Methods