Under UNICAP,all of the Following Overhead Costs Are Included in Inventory

question 104

Multiple Choice

Under UNICAP,all of the following overhead costs are included in inventory except

• A)factory utilities,rent,insurance and depreciation.
• B)officers' salaries and factory administration.
• C)research and experimentation.
• D)factory payroll,purchasing and warehouse costs.

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Definitions:

Historical Rate

A reference to the exchange rate used in translating foreign currency amounts into the reporting currency for financial statements at a specific past date.

Temporal Method

A method of foreign currency translation that uses exchange rates based on the timing of the original transaction.

Property, Plant & Equipment

Long-term tangible assets used in the operation of a business that are not intended for sale, such as machinery and buildings.

Historical Rate

The exchange rate at which a foreign currency transaction was converted into the reporting currency at the time of the transaction.