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

question 93

Multiple Choice

Match the costs that might be included as part of the cost of inventory to the listed accounting treatment.
-Excise taxes paid on goods acquired

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

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Definitions:

Marginal Cost

is defined as the increase in total production cost that arises from producing an additional unit of a good or service.

TVC

Total Variable Costs, which are the sum of expenses that vary directly with the level of production or business activity.

TFC

Total Fixed Costs, which are the sum of all costs that remain constant regardless of the level of production or output.

TC

In economics, often stands for Total Cost, which is the complete cost of production including both variable and fixed costs.