Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Question
The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories?
a. Administrative
b. Abnormal amounts of wasted materials, labor or other production costs.
c. Storage costs unnecessary in its production process.
d. Import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of finished goods, materials and services.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 2.Costs that are incurred in bringing the inventories to their present location and condition are capitalized as cost of inventories and these include a.costs of designing products for specific customers. b.abnormal amount of wasted materials, labor and production costs. c. storage cost not necessary in the production process before a further production stage. d. selling costs.arrow_forwardWhich of the following is true of abnormal spoilage? a. It is considered to be part of production. b. It is normally treated as a period cost c. It is normally treated as a product cost. d. It is prorated between cost of goods sold and inventory.arrow_forward389 Which of the following is excluded in the scope of PAS2 on Inventories? C. expensed directly into equity in the period in which the items are used. D. Land held for resale by subdivision company or real estate developer D. aggregated into the 'cost of goods sold' expense in the period in which the 388. Which one of the following is included in the scope of PAS 2 but excluded from the 395. Under PAS 2, items of inventory that are used by business enterprise as PAS 2, Inventories measurement rule? A Finished goods produced. B. Biological assets held for regular sale. C. Damaged merchandise inventory of a retailer. PRTC 0513 C. Manufacturing supplies A. Construction in progress. B. Inventories of a service provider. D. Raw materials 390. Inventories under PAS 2 do not include A. Construction-in-progress. B. Finished goods. C. Goods held for resale. D. Raw materials. 391. Which may be included as part of the cost of inventories under PAS 2722 A. Selling costs. B. Administrative costs.…arrow_forward
- Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past decision, contractual agreement, and government regulations. a. true b. false 2.) Product costs: a. are always expensed in the same period in which they are incurred. b. are inventoriable costs. c. vary directly with changes in cost driver. d. are always charged to an asset account in the same period in which they are incurred. 3. Controllable costs are cost items which can be regulated depending on the level of management one is in. a. True b. False b. Falsearrow_forwardWhen the sale of finished goods is recorded, the balance in which of the following accounts will decrease? None of the listed choices are correct Work-in-Process Sales Revenue Cost of Goods Sold Raw Materials Inventory Factory Overhead Finished Goods Inventoryarrow_forwardThe cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal loss d. Scraparrow_forward
- Which of the following would not be considered a component of the "cost" of Goods Sold?a. Salesforce Salariesb. Transportation for purchasec. Import duties or raw materiald. Factory electricity expensearrow_forwardWhich of the following is not permitted as a cost of inventory? a) Non-recoverable taxes b) Storage costs c) Fixed manufacturing overheads d) Shippingarrow_forwardPlease explain your answer why your options is correct and why other options is not correctarrow_forward
- Which of the following statements is false? Multiple Choice Examples of selling costs include shipping, sales commissions, and costs of finished goods warehouses. Discretionary fixed costs may be altered in the short term by current managerial decisions. A particular cost may be direct or indirect depending on the cost object. All sunk costs should be ignored in making a decision. Some of the conversion costs are period costs.arrow_forwardCompanies that use OSD can deduct the cost of goods sold or the cost of care provided.arrow_forwardInventory cost is least likely to include:A. production-related storage costs.B. costs incurred as a result of normal waste of materials.C. transportation costs of shipping inventory to customersarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning