Which of the following statements about the valuation of inventory are correct, according to IAS 2 Inventories? 1 Inventory items are normally to be valued at the higher of cost and net realisable value. 2 The cost of goods manufactured by an entity will include materials and labour only. Overhead costs cannot be included. 3 LIFO (last in, first out) cannot be used to value inventory. 4 Selling price less estimated profit margin may be used to arrive at cost if this gives a reasonable approximation to actual cost.
A、1, 3 and 4 only
B、1 and 2 only
C、3 and 4 only
D、None of the statements are correct
A、1, 3 and 4 only
B、1 and 2 only
C、3 and 4 only
D、None of the statements are correct
【参考答案及解析】
Statement 1) inventory should be valued at the lower of cost and NRV not the higherStatement 2) production overheads based on a normal level of production should be included
Statement 1) inventory should be valued at the lower of cost and NRV not the higherStatement 2) production overheads based on a normal level of production should be included