What Costs Are Not Included in the Cost of Inventories

question 72

Multiple Choice

What costs are not included in the cost of inventories?

• A)Raw materials.
• B)Labour used to make the finished product.
• C)Costs to deliver raw materials to the company.
• D)Costs to ship goods to customers.

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Definitions:

GDP

Gross Domestic Product entails the comprehensive valuation of every good and service produced in a country over a particular period, serving as a gauge for economic performance.

Unemployment Compensation

Financial payments given to individuals who have lost their jobs without their own fault, provided by the government or other authorized bodies.

Transfer Payment

A payment made by the government to individuals, without any goods or services being received in return. This includes welfare payments, social security, and subsidies.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country.