Which of the Following Is an Example of an Inventoriable

question 251

Multiple Choice

Which of the following is an example of an inventoriable cost when manufacturing products?

• A)Depreciation on office equipment
• B)Depreciation on store building
• C)Sales salaries expenses
• D)Depreciation on factory equipment

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Definitions:

Contingent Asset

An asset that might come into existence subject to the occurrence of some uncertain future event.

AASB 137

The Australian Accounting Standards Board standard that specifies the accounting for provisions, contingent liabilities, and contingent assets.

Deferred Liability

A deferred liability is a financial obligation that a company owes and is recorded on its balance sheet to be settled in a future period.

Uncertain Future Events

Events whose occurrence and impact cannot be predicted with certainty, often requiring risk management and contingency planning.