Inventory question II

1.Discuss the acceptability of the LIFO and replacement cost methods of inventory valuation and why the IASB has not permitted all methods to be used.

2.Explain the criteria to be applied when selecting the method to be used for allocating administrative costs.

3.Discuss the effect on work in progress and finished goods valuation if the net realisable value of the raw material is lower than cost at the statement of financial position date.

4.Discuss why the accurate valuation of inventory is so crucial if the financial statements are to show a true and fair view.