Asked by Adriana Vander Heyden on Jul 09, 2024
Verified
AASB 102 allows which of the following to be capitalised into the cost of inventories?
A) Selling costs.
B) Normal costs of material wastage.
C) Storage costs for finished goods.
D) Administrative overheads.
Material Wastage
The unwanted or unusable materials produced during a manufacturing or consumption process. It reflects inefficiency and can impact operational costs.
Selling Costs
Expenses associated with promoting and selling a company's products or services.
- Understand the costs that are considered and disregarded in inventory valuation.
Verified Answer
EM
Ekran MohamedJul 13, 2024
Final Answer :
B
Explanation :
Normal costs of material wastage can be capitalised into the cost of inventories according to AASB 102, as they are considered to be a part of the costs of production.
Learning Objectives
- Understand the costs that are considered and disregarded in inventory valuation.
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