Mathematics · Accounting Principles
A credit officer suspects that the Cost of Goods Sold (COGS) has been manipulated by including certain non-operating expenses. Which of the following items, if included in the calculation of COGS, would represent a deviation from standard accounting practices?
- 1Import duties and non-refundable taxes paid on the acquisition of specialized components from overseas markets
- 2Salaries and commissions paid to the sales team for achieving year-end targets in the metropolitan regions✓
- 3Wages paid to factory workers directly involved in the assembly and processing of the final product
- 4Carriage inward paid for the transportation of raw materials from the supplier's warehouse to the factory
Correct answer
Salaries and commissions paid to the sales team for achieving year-end targets in the metropolitan regions
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