please quickly thanks !give me correct answer !single choice! Which of the following is NOT true regarding IAS 2 Inventories?Fixed production overheads must be allocated to items of inventory onthe basis of the normal level of productionPlant lying idle will lead to a higher fixed overhead allocation to eachunitThe factory management team is a fixed overhead that relates to theproduction of inventoriesVariable production overheads are allocated to each unit on the basis ofthe actual usage of production facilities

The allocation of fixed overhead is done based on the normal capacity of production. factory…

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Business

Accounting

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8PA: A company has traditionally allocated its overhead based on machine hours but had collected this...

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Question

please quickly thanks !give me correct answer !single choice!

Which of the following is NOT true regarding IAS 2 Inventories?
Fixed production overheads must be allocated to items of inventory on
the basis of the normal level of production
Plant lying idle will lead to a higher fixed overhead allocation to each
unit
The factory management team is a fixed overhead that relates to the
production of inventories
Variable production overheads are allocated to each unit on the basis of
the actual usage of production facilities

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