Costs which are inventoriable include all of the following except
A) costs that are directly connected with the bringing of goods to the place of business of the buyer.
B) costs that are directly connected with the converting of goods to a salable condition.
C) buying costs of a purchasing department.
D) selling costs of a sales department.

Question

Quizplus · Accepted Answer

Inventoriable costs include all costs that are incurred to purchase, process, and bring goods to a saleable condition. These typically include direct materials, direct labor, and manufacturing overhead. Selling costs, such as those incurred by a sales department, are considered period costs and are not included in inventory costs. They are expensed in the period in which they are incurred.

Costs Which Are Inventoriable Include All of the Following Except