Entity A acquires inventories and incurs the following costs: Purchase price, gross of trade discount Trade discount 100,000 20,000 Non-refundable purchase tax, not included in the purchase price above Freight-in (Transportation costs) 5,000 15,000 2,000 10,000 Commission to broker Advertisement costs

Q: What is freight in on purchases?

A: Purchases are the transaction where in the buyer purchases goods and services from a seller by…

Q: a prod

A: Standard costs are the anticipated costs of manufacturing the product. Standard Direct Materials…

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: How do you calculate Cost of goods purchased

A: Cost of goods purchased (COGP) refers to the total cost incurred by a company to purchase inventory…

Q: What is the concept of material inventory error?

A: Raw materials inventory: Raw material inventories are the primary materials which are used in the…

Q: What is the difference between expenses versus assets?

A: Expenses and assets are both important components of a business’s financial health. Assets are items…

Q: What Is The Lean Perspective on Inventory?

A: Lean perspective on inventory is an approach which helps the organization to reduce the wastage an…

Q: what is net purchases? Is there another term for it?

A: Net purchases is an important metric in accounting because it is used to calculate the cost of goods…

Q: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: st of googs sold and intrest expens

A: The cost of goods sold can be calculated by using the inventory turnover ratio. Inventory turnover…

Q: When are the original cost and current book value are relevant?

A: Orginal cost is the cost paid to acquire the assets  Whereas the current book value is the value of…

Q: What are the different risks associated in the accounting of inventories?

A: Answer: Inventories are the current assets of the company which are realizable within 12 months from…

Q: How cost accounting covers the problem of price assessment

A: Cost Accounting Cost accounting is also a form of group action accounting that aims to capture a…

Q: What is a merchandiser?

A: Merchandiser is a business that purchases goods  and resells to customers…

Q: In accordance with IAS 2 Inventories define the terms "inventories" and "net realisable value”.…

A: Inventories as the name states is one the asset to the company or any business which comes under the…

Q: What is the meaning behind cost of acquisition? Please explain and provide an example.

A: By tracking the cost of acquisition, businesses can assess the profitability of their marketing…

Q: What is the difference between direct and indirect expenses?

A: Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: What is a purchase return? How does a purchase allowance differ from a purchase return?

A: Purchase return: Purchase return refers to return of merchandise or goods purchased by customers to…

Q: What are the pitfalls of franchising?

A: Franchising is a licensing that one party takes from the business owner. It allow that party to…

Q: What is an Acquisition costs?

A:

Q: How much is paid for supplies?

A:

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.