Question

Which from the following is included in the cost of purchases?
Options
1 Abnormal loss
2 Freight in
3 Rent of store
4 Administrative Salaries​

Answer 1

Answer:

rent of store ...option C

Answer 2

Answer:

Freight in

Explanation:

Freight in will be included in the cost of purchases.

1. Abnormal loss refers to loss arising due to abnormal causes or unforeseen factors  which are not common to production or the occurrence of this factors are not seen in the ordinary course of action.

Sickness of machinery, Earthquake, flood, Machine-breakdown, Defective raw material are such examples of abnormal loss.

  2.  Administrative Salaries​ refers to wages or salaries to certain employees which are connected to Administrative areas.

3. Rent of store means a contract between two persons or business for letting out a part of a property and in return the another person has to give rent,  or allowing or giving special right to person to use certain part of property and in exchange he/she has to give rent .

4. Freight in is the cost or expense of goods and material delivered to a business for sale purchase

or its a transportation cost connected with delivery of raw materials from manufacturers to business unit for further production.

#SPJ3