Question
1. Which of the following relating to inventories shall be disclosed in the entity's financial statements? I. The accounting policies adopted in measuring inventories, including
1. Which of the following relating to inventories shall be disclosed in the entity's financial statements? I. The accounting policies adopted in measuring inventories, including cost formula used. II. Volume of inventories purchased during the period. III. Amount of inventories recognized as expense during the period. IV. Amount of reversal of write down of inventories. V. Amount of inventories pledged as loan security. VI. Names of suppliers of inventories
a. I, II, III, IV and V
b. II, III, IV and V
c. I, II, III and IV
d. I, III, IV and V
2. The cost of conversion of inventories include all of the following, EXCEPT
a. costs directly related to the units of production, such as direct labor.
b. systematic allocation of fixed production overhead.
c. systematic allocation of variable production overhead.
d. systematic allocation of administrative overhead.
3. IAS 2, Inventories requires that the lower of cost and net realizable value shall be applied
a. to total inventories as a whole.
b. to each class of inventory.
c. on the basis of industry segment.
d. on an item-by-item basis.
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