Page 29 - Financial Accounting 1 ITC Preparation June 2018

ITC EXAM PREP – JUNE 2018

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

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