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May 15, 2026, 10:51:24 pm
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Author Topic: Insurance/Advertising on stock  (Read 1358 times)  Share 

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darkphoenix

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Insurance/Advertising on stock
« on: November 04, 2009, 04:28:53 pm »
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Is it classified as a product/period cost?

Or is it an other expense not associated with stock?
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2009: Accounting
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2011: Bachelor of Commerce/Engineering @ Monash

chris1991

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Re: Insurance/Advertising on stock
« Reply #1 on: November 04, 2009, 04:30:52 pm »
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Other expenses, because they are not incurred to get stock into a condition/location ready for sale.

Buy if the insurance is for the freight/delivery then it is a product/period cost (depending if it can be allocated on a logical basis) because it is incurred to get the goods into a location ready for sale.
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darkphoenix

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Re: Insurance/Advertising on stock
« Reply #2 on: November 04, 2009, 05:49:51 pm »
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Ok cool ty.
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Nelle

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Re: Insurance/Advertising on stock
« Reply #3 on: November 04, 2009, 07:25:28 pm »
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What about insurance on the storage of stock? Would that be a period cost?
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andrew4443

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Re: Insurance/Advertising on stock
« Reply #4 on: November 04, 2009, 08:36:51 pm »
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Quote from: Nelle on November 04, 2009, 07:25:28 pm
What about insurance on the storage of stock? Would that be a period cost?
I asked this question before, people seemed to think that insurance on the storage of stock is an 'other expense'. However, I have seen 4 different exams putting it as a period cost, so I'm backing the exams and putting it as a period cost if it comes up
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darkphoenix

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Re: Insurance/Advertising on stock
« Reply #5 on: November 04, 2009, 08:55:24 pm »
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Yeah thats why i asked the questions, cause some exams put it as period cost, whilst others say it is not a cost associated with stock.
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ben4386

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Re: Insurance/Advertising on stock
« Reply #6 on: November 04, 2009, 10:01:48 pm »
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im 100% certain its a period cost
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