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

question 50

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.)
-freight costs incurred by the seller to ship goods to its customers

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

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Definitions:

Equity Ownership

The holding of shares in a company, giving the shareholder ownership rights and potentially entitlements to dividends and voting powers.

Adjusted Subsidiary Value

The value of a subsidiary after adjustments have been made for fair value of assets and liabilities, often calculated during the consolidation process.

Investment Account

An account held at a financial institution that is used to buy, hold, and sell various investment securities like stocks, bonds, and mutual funds.

New Shares

Shares issued by a company for the first time to the public or existing shareholders as part of a capital raising or expansion strategy.