Page 28 - 5.1 (b) i. Finac1 ITC Summarised Notes
P. 28
ITC EXAM PREP
Measurement
Cost excludes
• Trade and settlement discounts
• Rebates - unless genuinely refunding selling costs
• Abnormal wastage
• Storage costs - unless necessary for production
• Administrative overheads unrelated to bringing inventory into
condition and location for sale
• Selling costs
• Financing elements of transactions with deferred payment terms
28
