True or false: inventories

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   The cost of inventory includes bringing it to its present location.

2. Statement is true

   No

   Statement

   Every expense a business incurs forms part of inventory cost.

3. Statement is true

   Yes

   Statement

   FIFO assumes the oldest stock is sold first.

4. Statement is true

   Yes

   Statement

   Specific identification is one of the methods available.

Instructions

Decide whether each statement about inventory is true or false.

Explanation