Match the Costs That Might Be Included as Part of the Cost

question 7

Multiple Choice

Match the costs that might be included as part of the cost of inventory to the listed accounting treatment.
-Freight costs incurred by the buyer to ship goods to its place of business

• A)Add to inventory cost
• B)Subtract from inventory cost
• C)Not an inventory cost

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Definitions:

Paid Vacation

A benefit offered by employers that provides employees with a certain amount of paid time off from work, intended for rest and recreation.

Stock Options

Rights to buy a certain number of shares of stock at a specified price.

Pension Plans

A type of retirement plan where an employer contributes funds to a pool of money set aside for an employee's future benefit, typically based on years of service and salary.

Performance Feedback

The process through which employees receive information about their job performance from their supervisors, peers, or other sources.