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:

Yield-To-Maturity

An estimate of the total return expected on a bond if the bond is held until the date it matures.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, used to assess how efficiently a company uses its assets to generate earnings.

Total Equity

The total net value of a company, calculated as total assets minus total liabilities, representing ownership value in the company.