The only inventoriable cost for a retailer is the cost of merchandise,which corresponds to the cost of finished goods manufactured for a manufacturing company.

Question

Quizplus · Accepted Answer

This statement is true. Inventoriable cost for a retailer refers to the cost of merchandise, whereas for a manufacturing company, it refers to the cost of finished goods manufactured. Both essentially refer to the cost of products that are ready to be sold to customers. Other costs such as salaries, rent, and utilities are considered period costs for both retailers and manufacturers, and are not inventoriable costs.

The Only Inventoriable Cost for a Retailer Is the Cost