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Which of the Following Items Should Not Be Included in the Cost

question 216

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Which of the following items should not be included in the cost of ending merchandise inventory?


Definitions:

Office Equipment

Office equipment refers to the fixed assets used for administrative, office-based tasks, including computers, printers, and furniture.

Accounts Payable

A liability on a company's balance sheet that represents the amounts due to suppliers by the business.

Straight-Line Method

The straight-line method is a way of calculating the depreciation of an asset, which spreads the cost of the asset evenly over its expected useful life.

Equipment

includes tangible property that is used in operations, often for more than one year, such as machinery, computers, and vehicles.

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