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

Question

Quizplus · Accepted Answer

Receiving and inspection costs are directly related to the purchase and storage of inventory, and therefore should be included in the cost of inventory. The cost of keeping inventory records is an administrative expense and should not be included in the cost of inventory. Amortization on the inventory warehouse is a fixed cost and should not be included in the cost of inventory. The salesperson's commission is a selling expense and should not be included in the cost of inventory.

Which of the Following Should Be Included in the Cost