Under UNICAP,all of the following overhead costs are included in inventory except
A)factory utilities,rent,insurance and depreciation.
B)officers' salaries related to production and factory administration.
C)research and experimentation.
D)factory payroll,purchasing and warehouse costs.

Question

Quizplus · Accepted Answer

UNICAP (Uniform Capitalization) requires all direct and indirect costs associated with acquiring or producing property, including inventory, to be included in the cost of goods sold. However, research and experimentation costs are not included in UNICAP and must be expensed in the period they are incurred. Therefore, option C is the correct answer.

Under UNICAP,all of the Following Overhead Costs Are Included in Inventory