Asked by
Saone Trada
on Nov 02, 2024
Verified
Which of the following is specifically excluded by AASB 102 from the cost of inventories measurement?
A) Trade discounts received
B) Freight (where the terms of sale are FOB destination)
C) Costs of designing inventory for an individual customer.
D) Costs of converting supplies into specific products for sale.
FOB Destination
A shipping term that indicates the seller is responsible for the goods and shipping costs until the merchandise reaches the buyer's location.
Trade Discounts
Price reductions granted by sellers to buyers in the commercial chain, often based on volume purchased or during promotional periods.
- Discern between the costs that are accounted for and omitted in the pricing of inventories.
Verified Answer
OH
Learning Objectives
- Discern between the costs that are accounted for and omitted in the pricing of inventories.