A Reason for Not Allocating All the Outgoings Incurred in Bringing

question 20

Multiple Choice

A reason for not allocating all the outgoings incurred in bringing the inventory to its present location and condition to the cost of inventory is:

• A) allocation may not make a material difference to reported profit or to the carrying amount of the inventory
• B) the allocation of some costs may be time-consuming
• C) incidental costs of acquisition may be minor
• D) all of the above are reasons