Which of the Following Is Not a Cost Element as Part

question 109

Multiple Choice

Which of the following is not a cost element as part of the inventory carrying costs?

• A) insurance costs
• B) property taxes
• C) purchase order preparation costs
• D) storage costs

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the new accounting period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, representing the wear and tear over time.

Service Revenue

Income earned by a company for the services it provides to its clients.

Adjusting Entries

Journal entries made at the end of an accounting period to update certain accounts and report revenues and expenses in the appropriate period.