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How Should the Following Costs Affect a Retailer's Inventory Valuation  Freight-in  Interest on Inventory Loan \begin{array}{lcc} & \text { Freight-in } & \text { Interest on Inventory Loan } \\\hline\end{array}

Question 89

Multiple Choice

How should the following costs affect a retailer's inventory valuation?  Freight-in  Interest on Inventory Loan \begin{array}{lcc} & \text { Freight-in } & \text { Interest on Inventory Loan } \\\hline\end{array}


A)         ~~~~~~~~ Increase         ~~~~~~~~        ~~~~~~~~ No effect
B)         ~~~~~~~~ Increase         ~~~~~~~~        ~~~~~~~~ Increase
C)         ~~~~~~~~ No effect         ~~~~~~~~        ~~~~~~~~ Increase
D)         ~~~~~~~~ No effect         ~~~~~~~~        ~~~~~~~~ No effect

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