Which One of the Following Costs Would Not Be Inventoriable

question 79

Multiple Choice

Which one of the following costs would not be inventoriable?

• A) Period costs
• B) Factory insurance costs
• C) Indirect materials
• D) Indirect labor costs

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold first, affecting the cost of goods sold and inventory value.

FIFO

"First In, First Out," a method of inventory valuation where the earliest acquired goods are sold first.

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.

Inventory Method

An accounting approach used to value and manage inventory, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).