The quantity of material in the material purchases budget is greater than the inferred from quantity ofmaterial in the material usage budget. Which of the following statements can be this situation? A: Wastage of material occurs in the production process B: Finished goods inventories are budgeted to increase C: Raw materials inventories are budgeted to increase D: Raw materials inventories are budgeted to decrease

According to IAS 2 Inventories, which TWO of the following costs should be included in valuing the inventories of a manufacturing company? (1) Carriage inwards (2) Carriage outwards (3) Depreciation of factory plant (4) General administrative overheads

The ( ) of buildings and inventories cannot be reliably measured except at the time they were acquired. A: cost B: fair value C: market value D: B and C are right

Which of the following motivates reducing inventories A: the need to reduce payments to suppliers B: a high cost of capital C: a need for better resource utilization D: customer requests for on-time delivery

Qualifications inventories can be tracked and maintained by using all of the following EXCEPT a _______. A: ratio analysis matrix B: personnel replacement chart C: position replacement card D: skills inventory software

Which of the following statement is not true? A: The initial investment in working capital is a cash outflow at the ending of the project for items such as inventories B: Working capital is recaptured at the end of the project when working capital is no longer required C: Depreciation is not a current cash outflow. D: Discounted cash flow methods automatically provide for a return of the original investment, thereby making a deduction for depreciation unnecessary