AASB 102 Allows Which of the Following to Be Capitalised

question 18

Multiple Choice

AASB 102 allows which of the following to be capitalised into the cost of inventory?

• A) storage costs for finished goods
• B) selling costs
• C) normal wastage costs
• D) administrative overheads

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the shares remains the same.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders.

Par Stock

A standard inventory level that a business aims to maintain to ensure adequate supplies are available to meet demand without holding excessive stock.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, while maintaining the same total valuation.