Which of the Following Does the Cost of Inventories in a Merchandising

question 78

Multiple Choice

Which of the following does the cost of inventories in a merchandising entity include?
i. Purchase price of goods
ii. A deduction for all trade discounts
iii. The cost of transport to the entity
iv. Labour cost of customer service personnel

• A) All of the given answers
• B) i, ii and iii
• C) ii iii and iv
• D) i, ii and iv

---

Definitions:

Estimable

Capable of being estimated or approximated in quantity or value.

Interest Calculations

The process of determining the amount of interest due or earned over a specified period of time, often based on principal amount, rate, and time.

Note Issued

A monetary tool signifying a commitment to pay a determined sum of money on a designated future date.

Quick Assets

Resources that can be rapidly turned into cash without a decrease in value, such as cash itself, tradable securities, and money owed from accounts receivable.