• 1 Marks

FA – Nov 2021 – L1 – SA – Q9 – Inventory

This question tests knowledge of costs included in inventory valuation as per IAS 2.

According to IAS 2-Inventories, which of the following costs should be included in determining the value of inventories of a manufacturing company?
A. Carriage inwards
B. Carriage outwards
C. General administrative overheads
D. Depreciation of land and building
E. Discount allowed

A

Explanation:
Carriage inwards is a direct cost related to bringing the inventory to its current condition and location and is therefore included in inventory valuation.

Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form