Which of the following statements is INCORRECT regarding the overriding objectives underlying inventory standards and guide management?
A)Report an inventory cost on the statement of financial position that is representative of the inventory's recent cost.
B)Choose an approach that corresponds as closely as possible to the physical flow of goods.
C)Use the same method for all inventory assets that have similar economic characteristics.
D)It is permissible under ASPE to use any inventory method, including LIFO.

Question

Quizplus · Accepted Answer

It is incorrect to state that it is permissible under ASPE to use any inventory method, including LIFO. In fact, ASPE does not permit the use of LIFO (last-in, first-out) method for valuing inventory. The other options (A, B, and C) are all correct and consistent with the objective of inventory standards and guide management.

Which of the Following Statements Is INCORRECT Regarding the Overriding