Under AASB102 Inventories the Cost of Inventory Must Include

question 11

Multiple Choice

Under AASB102 Inventories the cost of inventory must include

• A) administration and selling costs.
• B) transportation and handling costs.
• C) storage costs.
• D) abnormal wastage costs.

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Definitions:

Audit Report

An official opinion issued by an auditor based on an examination of a company's financial statements, expressing the auditor's view on whether the financial statements give a true and fair view of the company's financial performance and position.

Independent CPA

A Certified Public Accountant who performs an audit without having any conflicts of interest, ensuring impartiality and objectivity.

Acid-test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing cash, marketable securities, and net receivables by current liabilities.

Receivables Turnover

A financial metric indicating how quickly a company collects on outstanding accounts receivable in a given period, calculated as net credit sales divided by average accounts receivable.