CHAPTER 8
VALUATION OF INVENTORIES: A COST-BASIS APPROACH
IFRS questions are available at the end of this chapter.
TRUE FALSE— Conceptual
1. A manufacturing concern would report the cost of units only partially processed as inventory in the balance sheet.
2. Both merchandising and manufacturing companies normally have multiple inventory accounts.
3. When using a perpetual inventory system, freight charges on goods purchased are debited to Freight-In.