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:

Fractions

Fractions represent a part of a whole or, more generally, any number of equal parts.

Lowest Terms

Refers to a fraction that has been reduced to its simplest form, where the numerator and denominator are as small as possible and have no common factors other than 1.

Fractions

Mathematical expressions representing parts of whole numbers, typically made up of a numerator and a denominator.

Pounds

A unit of currency used in the United Kingdom and other British territories, also known as GBP (Great Britain Pounds).