CERTYNEX IFRS ACADEMY

To designate the most advantageous market for a lot of cocoa, an analyst compares gross prices: A at 800 (transaction costs 20, transport 10) and B at 810 (transaction costs 45, transport 30). He selects B. What is the error?

He should have added the transaction costs to the prices before comparing.

He compares gross prices: after transaction and transport costs, A gives 770 and B 735, so A is the most advantageous.

He should have looked for a principal market before any comparison, which he did not indicate, before even comparing each market's costs.

He should have used the lowest price, out of prudence.