The Following Costs Were Associated with the Acquisition of an Inventory

question 148

Multiple Choice

The following costs were associated with the acquisition of an inventory item purchased by a firm (the item is to be resold by the firm) : $\begin{array} { | l | l | } \hline \text { Freight costs, FOB shipping point } & \$ 2,000 \\\hline \text { Sales and excise taxes } & 800 \\\hline \text { Interest on debt used to purchase item } & 600 \\\hline \text { Special material added to item by firm } & 900 \\\hline \text { Labour costs to add the special material } & 400 \\\hline \text { Gross invoice price } & 90,000 \\\hline\end{array}$ Terms: 3/10, n/30 Payment was made on the 12^th day after purchase
What is the proper inventoriable cost for this item of inventory?

• A) $91,400
• B) $94,100
• C) $92,000
• D) $90,100

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Definitions:

Self-Control

The ability to regulate and control impulses, emotions, and behaviors to achieve long-term goals.

Self-Justification

The defense mechanism in which individuals provide reasons or explanations for their behaviors or beliefs in a manner that defends their self-concept.

High Self-Efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task.

Mathematical Neurosis

An intense anxiety or fear related to math and mathematical problem-solving.