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.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 102 specifies that the cost of inventories should be assigned to specific items using the FIFO (First-In-First-Out), specific identification or weighted average cost methods. Therefore, option C is the correct answer as it lists the three methods prescribed by the standard. Option A is incorrect as it includes LIFO, which is not permitted under AASB 102. Options B and D include methods not authorized by AASB 102. Finally, option E is obviously incorrect as the question specifically asks for a choice of methods to apply the costs of inventories.

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