Q302
Carriage inwards refers to the cost of transportation for
A.
Purchase of materials
AnswerB.
Sale of products
C.
Returns outward
D.
Return of unsold goods
Answer: Option A
Solution
Answer: Option A
Solution:
Carriage inwards refers to the cost of transportation for Purchase of materials. The carriage inwards costs are considered to be part of the cost of items purchased, since an asset's cost is defined as all costs that are necessary to get the asset in place and ready for use.