Which item should not be included in the income statement's cost of inventory?
A) The invoice price of the goods
B) Costs associated with receiving and inspecting the goods
C) Costs incurred in preparing the goods for sale
D) GST

Question

Quizplus · Accepted Answer

GST (or any other sales tax) should not be included in the cost of inventory on the income statement as it is a liability to be paid to the government and not a cost associated with acquiring or preparing the inventory for sale.

Which Item Should Not Be Included in the Income Statement's