Which of the following costs should not be included on the statement of financial position as part of the cost of inventory?
A) Abnormal freight.
B) Import duties.
C) Conversion costs.
D) All of the choices are included on the statement of financial position as part of the cost of inventory.

Question

Quizplus · Accepted Answer

All of the choices listed should be included on the statement of financial position as part of the cost of inventory. Abnormal freight and import duties are costs incurred to bring the inventory to its present location and condition, while conversion costs are the costs of transforming raw materials into finished goods.

Which of the Following Costs Should Not Be Included on the Statement