AASB 102 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

Question

Quizplus · Accepted Answer

AASB 102 prohibits including freight costs in the cost of inventory when the terms of sale are FOB destination. Trade discounts and import duties can be included in the cost of inventory if they meet certain criteria, and production overheads can also be included if they are directly related to the production process.

AASB 102 Prohibits Which of the Following from Being Included