According to IAS 2,one or more of which set of methods should be used to apply the costs of inventories to particular items of inventory?
A)specific identification, LIFO or FIFO
B)absorption costing, weighted average costing or LIFO
C)FIFO, specific identification or weighted average cost
D)weighted average costing, ABC costing or FIFO

Question

Quizplus · Accepted Answer

According to IAS 2, FIFO, specific identification or weighted average cost can be used to apply costs of inventories to particular items of inventory. However, specific identification may not be possible or practical for certain inventories, while weighted average can result in distortions when there are significant changes in purchase or production costs. Therefore, FIFO is often considered the most appropriate method for most inventories as it generally results in a reasonable approximation of the cost of items sold.

According to IAS 2,one or More of Which Set of Methods