ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Opportunity cost of what was not purchased.
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Associated cost with upkeep of property.
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Potential profit at sale.
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Possible loss of value of property and loss at the time of sale.
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Detailed explanation-1: -Costs of purchase include the purchase price, import and tax-related duties, transport costs, insurance during transportation, handling costs, and other costs that are directly attributable to the acquisition of finished goods, materials, and services.
Detailed explanation-2: -Salaries of selling staff would NOT be considered as a component of ‘cost’ of stock.
Detailed explanation-3: -The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use. These costs include the purchase price and such factors as commissions, transportation, appraisals, warranties and installation and testing.
Detailed explanation-4: -The cost of sales refers to all the direct and indirect costs it takes to create a product and sell it on the market. This can include the cost of labor, cost of raw materials, cost of storage, and other overhead expenses.