Under UNICAP,all of the Following Overhead Costs Are Included in Inventory

question 104

Multiple Choice

Under UNICAP,all of the following overhead costs are included in inventory except

• A)factory utilities,rent,insurance and depreciation.
• B)officers' salaries and factory administration.
• C)research and experimentation.
• D)factory payroll,purchasing and warehouse costs.

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Definitions:

Gross Sales

represent the total sales revenue before any deductions are made for returns, allowances, or discounts.

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.

Credit Sales

Sales made on credit, allowing buyers to pay at a later date, usually generating accounts receivable for the seller.

Discount Period

The time frame between the date of the sale and the due date when a discount is available for payment of an invoice.