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

question 6

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 seller to ship goods to its customers

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

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Definitions:

Quantity

The quantity of a tangible or intangible asset viewed as a single entity or a collective sum.

Graph

A visual representation of data, showing the relationship between variables.

Unit-Profit Margin

The measure of profit derived from each unit of product sold, calculated by subtracting the cost of goods sold from the sales price per unit.

Output

The cumulative output of products or services generated by a corporation, sector, or economic system.