Which of the following does the cost of inventories in a merchandising entity include?
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
A) All of the given answers
B) i, ii and iii
C) ii iii and iv
D) i, ii and iv

Question

Quizplus · Accepted Answer

The cost of inventories in a merchandising entity includes the purchase price of goods, a deduction for all trade discounts, and the cost of transport to the entity. However, labor cost of customer service personnel is not included in the cost of inventories.

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