Which of the following does the cost of inventories in a merchandising entity includes?
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

Question

Quizplus · Accepted Answer

The cost of inventories in a merchandising entity includes the purchase price of goods and a deduction for all trade discounts. It also includes the cost of transport to the entity, but does not include labor costs of customer service personnel. Therefore, the best choice is option B (i, ii, and iii).

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