Which one of the following costs would not be inventoriable?
A) Period costs
B) Factory insurance costs
C) Indirect materials
D) Indirect labor costs

Question

Quizplus · Accepted Answer

Period costs are not directly associated with the production process, therefore they cannot be assigned to a specific inventory item. Rather, they are expensed in the period they are incurred. Factory insurance costs, indirect materials, and indirect labor costs are all associated with producing goods and are therefore included as inventoriable costs.

Which One of the Following Costs Would Not Be Inventoriable