Which of the following statements is true of costs associated with goods for sale?
A) Information-gathering technology increases the reliability and timeliness of inventory information and increases the costs related to inventory.
B) Opportunity costs are not recorded in financial accounting systems because they are not a significant component in several cost categories.
C) The costs of receiving and inspecting the items are included in the purchase orders are ordering costs.
D) Opportunity costs are recorded in financial accounting systems but are a not significant component in several cost categories.

Question

Quizplus · Accepted Answer

The costs of receiving and inspecting the items included in purchase orders are known as ordering costs. Option A is incorrect as it mentions that information-gathering technology increases inventory costs, which is not true. Option B is incorrect as opportunity costs are recorded in financial accounting systems but not in a separate category. Option D is also incorrect as it mentions that opportunity costs are not a significant component in several cost categories which is not true.

Which of the Following Statements Is True of Costs Associated