Which of the following would be an inventoriable product cost?
A) the cost of purchasing the inventory from the supplier
B) the cost of shipping the inventory to a customer
C) inventory storage costs
D) advertising costs

Question

Quizplus · Accepted Answer

The cost of purchasing inventory from the supplier is considered an inventoriable product cost because it is directly related to acquiring and producing the inventory that will eventually be sold.

Answer: C 
 Inventory storage costs, such as rent or insurance, are also considered inventoriable product costs because they directly relate to the cost of holding and maintaining the inventory until it is sold.

B and D are not inventoriable product costs because they do not relate directly to the production or acquisition of inventory. Shipping costs are typically considered a period expense, while advertising costs are considered a selling expense.

Which of the Following Would Be an Inventoriable Product Cost