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
D
Purchase price
Correct Answer: Salaries of selling staff
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.