Which of the following reporting practices is permissible for interim financial reporting?
A) Use of the gross profit method for interim inventory pricing.
B) Use of the direct costing method for determining manufacturing inventories.
C) Deferral of unplanned variances under a standard cost system until year-end.
D) Deferral of inventory market declines until year-end.

Question

Quizplus · Accepted Answer

The gross profit method for interim inventory pricing is permissible for interim financial reporting because it provides a reasonable estimate of inventory cost and can be used when it is impracticable to take a physical inventory.

Which of the Following Reporting Practices Is Permissible for Interim