Match the Costs That Might Be Included as Part of the Cost

question 1

Multiple Choice

Match the costs that might be included as part of the cost of inventory to the listed accounting treatment. (Choices may be used more than once.)
-returned goods to the seller

• A)added to inventory cost
• B)subtracted from inventory cost
• C)not an inventory cost

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Definitions:

Unverifiable

Pertaining to information or data that cannot be confirmed or corroborated through evidence or additional sources.

Unreliable

Lacking consistency, dependability, or accuracy in information, data, or result.

Cumulative Weighted Average Expenditures

The total cost of investments or expenditures over a period, weighted by the time each amount was invested or incurred, used in capital budgeting or to calculate interest during construction.

Useful Life

The estimated duration a fixed asset is expected to be economically useful to an organization.