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:

Generally Accepted Accounting Principles

A framework of accounting standards, principles, and procedures that companies follow to compile their financial statements.

Economic Events

Any occurrences or transactions that affect the financial position of a company, including sales, purchases, and investments.

Income Tax Regulations

The rules and laws that govern how income taxes are calculated, collected, and enforced by the tax authorities.

Owner Withdraws

Transactions where business owners take funds or assets out of the business for personal use, also known as drawings.