Inventories CANNOT be valued at standard cost in financial statements.

Name: Inventories CANNOT be valued at standard cost in financial statements.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventories can be valued at standard cost in financial statements, as long as certain criteria are met (such as the standard cost being representative of actual costs and not overstating inventory values). However, if inventory is not valued at standard cost, it must be valued at lower of cost or market.

Inventories CANNOT Be Valued at Standard Cost in Financial Statements