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Question

Which of the following is excluded when calculating the cost of inventory?

This question was previously asked in
SSC CGL 2019 (Tier 2) GS Finance & Economics Previous Year Paper (17-Nov-2020)
The correct answer is

Selling and distribution costs

Selling and distribution costs are excluded when calculating the cost of inventory. These costs are part of operating expenses and not directly related to the production or acquisition of the inventory itself. On the other hand, taxes, freight inwards, and production overheads are included in the inventory cost calculation.

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