Which of the Following Would Not Be Included Among the Costs

question 76

Multiple Choice

Which of the following would not be included among the costs of carrying inventory?

• A) Obsolescence
• B) Opportunity cost of capital
• C) Raw material cost
• D) Risk of pilferage

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Definitions:

Risk of Loss

The possibility that an asset's value could decrease due to changes in the market or other factors, affecting the holder's financial position.

Insurable Interest

A requirement that a person must stand to suffer a direct financial loss from the damage, loss, or destruction of the property or life insured.

Goods-in-bailment

Refers to personal property that has been delivered into the hands of another for custody or performance of some service, without transfer of ownership.

Economic Interest

A vested interest in financial gains or losses, typically relating to investments, ownership, or participation in business ventures or market activities.