What this practice covers
These questions are drawn from past CIE 9706 Accounting papers and filtered to materials and inventory valuation. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on materials and inventory valuation, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Using LIFO to value inventory in the financial statements.
- Recalculating the AVCO average after an issue. The average changes only when goods are received.
- Valuing closing inventory at selling price.
- Saying FIFO always gives a higher profit, without naming rising prices.
- Applying the lower of cost and net realisable value to the total rather than to each line.
- Forgetting that the two methods give the same total cost over the life of the business. They only change which period the cost falls in.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Materials and inventory valuation revision notes.