Inventoriable costs include all of the following except the
A) freight costs incurred when buying inventory.
B) costs of the purchasing and warehousing departments.
C) cost of the beginning inventory.
D) cost of goods purchased.

Question

Quizplus · Accepted Answer

Inventoriable costs are the costs that are used for valuing inventory and are recognized as expenses when the inventory is sold. These costs include the cost of purchasing or producing the inventory, freight costs, and other costs incurred in bringing the inventory to its present location and condition. However, the costs of the purchasing and warehousing departments are not inventoriable costs as they are not directly related to the production or purchase of inventory.

Inventoriable Costs Include All of the Following Except the