IAS 2 Prohibits Which of the Following from Being Included

question 10

Multiple Choice

IAS 2 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:

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specific time period.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.

Demand Curve

A graph showing the quantity of a good that consumers are willing and able to purchase at various prices.