At the Year-End Inventory Count,if Goods in Transit Are Shipped

question 157

Multiple Choice

At the year-end inventory count,if goods in transit are shipped F.O.B.shipping point,whose inventory count should they be included in?

• A) the seller's
• B) the buyer's
• C) the shipping company's
• D) the customer's

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Definitions:

Production Costs

The total expense incurred in the manufacture of a product, including labor, materials, and overhead.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Net Profit

The remaining income after all expenses, taxes, and costs have been subtracted from total revenue.

Value Chain

A series of activities by a firm that adds value to its products or services from conception to delivery.