Which of the following should be included in the cost of inventory?
A)the cost of keeping the inventory records
B)depreciation on the inventory warehouse
C)the salesperson's commission
D)receiving and inspection costs

Question

Quizplus · Accepted Answer

The cost of keeping the inventory records (A), depreciation on the inventory warehouse (B), and the salesperson's commission (C) are not included in the cost of inventory. These costs are considered separate expenses. Receiving and inspection costs (D) are necessary costs for getting the inventory ready for sale and are therefore included in the cost of inventory.

Which of the Following Should Be Included in the Cost