Dear sir,
In the following question the correct answer is all of them. But shouldn't the second one be included as part of the cost?
Which of the following would NOT normally be included as part of the cost of inventory in a manufacturing business? (i) Costs of transporting finished goods to customers' premises (ii) Storage costs for raw materials, stored at the premises of a third party (iii) Discounts allowed for prompt payment by customers
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The cost of inventory
1y ago#1If they had to pay the third party for the storage, then this should be included in the cost.
Where did you find this question, because I think it is either misleading or worded badly :-)
It is a test your understanding question from Kaplan's Financial Reporting study book.
1y ago#3Well I still think it a badly worded question.
What should be included is anything that they are having to pay the other company for the storage (which might not be the same as the costs incurred by the other company).
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