Which of the following statements is INCORRECT regarding the overriding objectives underlying inventory standards?
A) Report an inventory cost on the statement of financial position that is representative of the inventory's recent cost.
B) Choose an approach that corresponds as closely as possible to the physical flow of goods.
C) Use the same method for all inventory assets that have similar economic characteristics.
D) It is permissible under ASPE to use any inventory method, including LIFO.

Question

Quizplus · Accepted Answer

It is not permissible under ASPE to use LIFO (last-in, first-out) method for inventory valuation. ASPE only allows the use of specific identification, first-in, first-out (FIFO), and weighted average cost methods.

Which of the Following Statements Is INCORRECT Regarding the Overriding