Which element in the value chain would contain inventoriable costs for a manufacturer?
A)Research and development
B)Design
C)Production
D)Distribution

Question

Quizplus · Accepted Answer

Inventoriable costs refer to the direct costs related to the production of goods, including the cost of raw materials, labor, and overhead. Therefore, production is the element in the value chain that contains inventoriable costs for a manufacturer. Research and development and design are typically considered period costs, while distribution costs are associated with getting the finished product to the customer.

Which Element in the Value Chain Would Contain Inventoriable Costs