Which Is Added to the Cost of Inventory

question 71

Multiple Choice

Which is added to the cost of inventory?

• A) Cost of shipping goods to customers, but not freight costs to acquire inventory.
• B) Freight costs to acquire inventory, but not the cost of shipping goods to customers.
• C) Both cost of shipping goods to customers and freight costs to acquire inventory.
• D) Neither cost of shipping goods to customers nor freight costs to acquire inventory.

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Definitions:

Managerial Decision

Choices or judgments made by managers in the context of strategic planning and resource allocation to achieve business objectives.

Short-term

Referring to a period of time typically less than one year, used in context of planning, finance, or objectives.

Outsourcing

The practice of hiring third parties to perform services or produce goods traditionally done in-house, often to cut costs.

Descriptive Statistics

Statistical methods used to summarize, show, and analyze data sets, typically through measures of central tendency and variability.