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:

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual time taken to perform various activities.

Tech Support Department

A division within a company that provides assistance and troubleshooting services for technology products or services.

Customer Cost Analysis

The process of evaluating all costs involved in acquiring and maintaining customers against the revenue they generate.

Time-Driven Activity-Based Costing

A cost accounting method that assigns costs based on the time resources are used by activities, using time as the driving factor.