Which of the Following Items Should Not Be Included in the Cost

question 83

Multiple Choice

Which of the following items should not be included in the cost of ending inventory?

• A) purchased units in transit, shipped FOB shipping point
• B) purchased units in transit, shipped FOB destination
• C) units on hand in the warehouse
• D) sold units in transit, not invoiced, and shipped FOB destination

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Definitions:

Ethical Decisions

Choices made based on moral principles and values.

Objective Standards

Criteria or benchmarks that are based on facts and are impartial, allowing for consistent and unbiased assessment or decision-making.

Subjective Impacts

Effects or consequences that are based on or influenced by personal feelings, tastes, or opinions rather than external facts.

Making Ethical Decision

The process of choosing actions that are consistent with one's principles and values, often in a professional context.