It is possible that a company's financial statements may report inventories at
A) budgeted costs.
B) standard costs.
C) both budgeted and standard costs.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

Inventories can be reported at standard costs, which are predetermined costs that companies use for budgeting and assessing performance. Standard costs are used in accounting to value inventory and to record cost of goods sold, providing a way to compare actual costs to expected costs. Budgeted costs, on the other hand, are projections for future periods and are not used to report inventories in financial statements.

It Is Possible That a Company's Financial Statements May Report