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What does the carriage inwards cost represent in the Trading Account?
  • a)
    The cost of transporting finished goods to customers
  • b)
    The cost of transporting raw materials to the factory
  • c)
    The cost of transporting goods between warehouses
  • d)
    The cost of transporting the company's employees
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What does the carriage inwards cost represent in the Trading Account?a...
Carriage inwards refers to the cost incurred to bring the materials to the firm's location and make them available for use, essentially the cost of transporting raw materials to the place where they are needed for production or sale.
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What does the carriage inwards cost represent in the Trading Account?a)The cost of transporting finished goods to customersb)The cost of transporting raw materials to the factoryc)The cost of transporting goods between warehousesd)The cost of transporting the company's employeesCorrect answer is option 'B'. Can you explain this answer?
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