Under IFRS, Which of the Following Would Be Included in the Cost

question 127

Multiple Choice

Under IFRS, which of the following would be included in the cost of inventories?

• A) Product specific designer costs
• B) Abnormal waste materials
• C) Selling costs
• D) All of these would be included in the cost of inventories.

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Definitions:

Desired Rate

An expected or targeted rate of return or interest rate that an individual or company aims to achieve on investments or projects.

Average Rate of Return

A profitability gauge for investments, determined by dividing the initial investment cost into the average yearly profit.

Present Value Factor

A factor used to calculate the present value of a cash flow to be received in the future.

Cash Payback Period

The period of time required for the return on an investment to "repay" the original capital cost of the investment.