Both US GAAP and IFRS Exclude Which of the Following from from the Cost

question 168

Multiple Choice

Both U.S. GAAP and IFRS exclude which of the following from the cost of inventory?

• A) Selling costs
• B) General administrative costs
• C) Storage costs of finished goods
• D) All of these are excluded by U.S. GAAP and IFRS.

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Definitions:

Optimal Solution

The best possible outcome or answer to a problem, maximizing or minimizing the objective function within given constraints.

Constraints

Limitations or restrictions that affect the decision-making process or the execution of plans.

Valid Constraints

Restrictions or conditions that are applicable and necessary in mathematical problems or models.

Linear Programming

A mathematical method used in operations research to find the best possible solution to a problem within given constraints.