Which item should not be included in the income statement's cost of inventory?
A) The purchase price of the goods.
B) Cost for normal storage of the goods.
C) Costs incurred in preparing the goods for sale
D) Costs associated with receiving and inspecting the goods

Question

Quizplus · Accepted Answer

Cost of normal storage of goods should not be included in the income statement's cost of inventory. Only the direct costs associated with acquiring and preparing the goods for sale should be included. Costs for inspecting and receiving the goods, as well as any costs for preparing the goods for sale (such as packaging or assembly), should also be included in the cost of inventory.

Which Item Should Not Be Included in the Income Statement's