Page 79 - Finac1 Test 1 slides

INVENTORIES

Other issues

• Standard costing (.21)

• May be used as costing method as long as it approximates
actual cost

• Standards must be regularly reviewed

• Large variances may indicate a need for review and revision
of standards

• Disclosure in P/L

• By nature - IAS 1.102

• Depreciation, staff costs, raw material used, changes in finished
goods and WIP

• By function - IAS 1.103

• Cost of sales, distribution, admin and other expenses

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