Inventoriable Costs

question 82

Multiple Choice

Inventoriable costs:

• A)are particularly useful in management accounting.
• B)are also referred to as nonmanufacturing costs.
• C)include administrative and marketing costs.
• D)are expensed in the accounting period in which the products are sold.

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Definitions:

Valid Contract

An agreement between two or more parties that is enforceable by law.

Executory Contracts

Contracts under which both parties have unfulfilled obligations that need to be met in the future.

Bilateral Contracts

Agreements involving two parties where each commits to fulfilling an obligation to the other, such as in sales or service contracts.

Express Contracts

Contracts in which the terms are stated explicitly and can be oral or written.