Which of the Following Costs Would Not Be Included in the Inventory

question 93

Multiple Choice

Which of the following costs would not be included in the inventory cost?

• A) Invoice price
• B) Cost of goods held on consignment
• C) Cost of outgoing goods shipped FOB destination
• D) Sales tax

---

Definitions:

Income Effect

The change in consumption resulting from a change in real income.

Theory of Consumer Choice

An economic framework describing how consumers make decisions to allocate their resources optimally among various goods and services.

Indifference Curve

A graph representing combinations of goods among which a consumer is indifferent, showing trade-offs between two goods.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget and prices.