Which of the Following Should Be Included in the Inventory

question 73

Multiple Choice

Which of the following should be included in the inventory cost of an item purchased?

• A) Purchase discounts lost
• B) Insurance premium on item during transit
• C) Costs incurred to build a permanent display cabinet for this, and similar items
• D) Costs to train employees on a new computerized inventory control system

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Definitions:

NCI Allocation

The process of distributing the non-controlling interest’s share of equity in the consolidated financial statements.

Upstream Transactions

Transactions where a subsidiary sells goods or services to its parent company.

Unrealised Intragroup Profit

Profit on transactions within a group of companies that has not been realized outside the group, affecting consolidated financial statements.

Opening Inventory

The value of a business's inventory at the start of an accounting period.