Which of the Following Is Not Included as an Inventory

question 72

Multiple Choice

Which of the following is not included as an inventory holding cost?

• A) Annualized cost of materials
• B) Handling
• C) Insurance
• D) Pilferage
• E) Storage facilities

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Definitions:

Days' Sales Uncollected

Days' Sales Uncollected is a financial metric calculating the average number of days it takes a company to collect payments after a sale has been made.

Petty Cash Receipts

Petty cash receipts are documents that record small, immediate cash expenses incurred by a business, tracking the disbursement and replenishment of a petty cash fund.

Reimburse

To pay back money to someone which they have spent or lost.

Transportation-In

Costs associated with bringing raw materials to a manufacturing plant or storage location, typically classified as part of the inventory cost on the balance sheet.