The Cost of an Inventory Item Includes the ________, Plus

question 44

Short Answer

The cost of an inventory item includes the ________, plus ________ costs necessary to put it in a place and condition for sale.

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Definitions:

Freight Costs

Charges incurred for transporting goods between locations, typically from the manufacturer to the buyer.

New Equipment

Assets recently acquired by a business for operational purposes, such as machinery, computers, or office furniture.

Government Permits

Official permissions granted by governmental bodies that allow individuals or companies to conduct certain activities that would otherwise be prohibited.

Develop Land

The process of making land suitable for construction or other use, which may involve clearing, grading, and installing infrastructure such as roads and utilities.