Which of the Following Items Will Increase Inventoriable Costs for the Buyer

question 6

Multiple Choice

Which of the following items will increase inventoriable costs for the buyer of goods?

• A) Purchase returns and allowances granted by the seller
• B) Purchase discounts taken by the purchaser
• C) Freight charges paid by the seller
• D) Freight charges paid by the purchaser

---

Definitions:

Production Costs

Expenses incurred in the process of making or manufacturing a product.

Cost Of Production Report

A document detailing the total cost involved in manufacturing goods, including materials, labor, and overhead expenses.

Finished Goods

Finished goods are completed products ready for sale.

Cost Of Production Report

A detailed statement showing the total production costs for a period and the cost per unit produced.