ICAEW AF · Chapter 9 · Question 2 of 9
Which of the following costs should NOT be included in the cost of inventories under IAS 2?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Costs of delivering goods to customers
Explanation
The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Import duties, carriage inwards and the purchase price net of trade discounts are therefore included. Selling and distribution costs, such as delivering goods to customers, are expensed as incurred.
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