Q221
Which of the following would NOT be considered as a component of 'cost' of stock?
A.
Transportation inward costs
B.
Import duties
C.
Salaries of selling staff
AnswerD.
Purchase price
Answer: Option C
Solution
Answer: Option C
Solution:
Salaries of selling staff would NOT be considered as a component of 'cost' of stock. When investors purchase shares of stock, the price paid includes two components: the price of the stock and the fee charged by the brokerage firm, called commission.