AASB 102 Prohibits Which of the Following from Being Included

question 6

Multiple Choice

AASB 102 prohibits which of the following from being included in the cost of inventory?

• A) trade discounts received
• B) freight (where the terms of sale are FOB destination)
• C) production overheads
• D) import duties

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Definitions:

Signature

A person's handwritten or digitally authenticated mark used to signify agreement, consent, or identification.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.

Primarily Liable

Primarily liable refers to the party that is first and foremost responsible for fulfilling an obligation or compensating for a liability.

Secondarily Liable

Secondarily liable refers to a party's obligation to pay a debt or perform a duty if the primary party responsible fails to do so.