Cost of goods purchased includes the:
A) purchase cost.
B) transportation inward cost.
C) storage cost.
D) purchase cost AND transportation inward cost.

Question

Quizplus · Accepted Answer

Cost of goods purchased includes both the purchase cost and transportation inward cost, as these are necessary expenses to acquire the goods for resale. Although storage costs are associated with holding the goods, they are not part of the cost of goods purchased.

Cost of Goods Purchased Includes The