Which of the Following Is Specifically Excluded by AASB 102

question 29

Multiple Choice

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.

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Definitions:

Variable Cost

Expenditures that change in line with production or sales quantities, notably labor and materials.

Mixed Cost

A cost consisting of both fixed and variable components, changing in total with the level of activity but remaining constant on a per unit basis only up to a certain level of activity.

Activity

A measure of actions or operations within a process, often used to allocate costs in activity-based costing.

Per Unit

A term referring to the cost, price, or quantity related to one unit of a product or service.