Incidental Costs Added to the Costs of Inventory Can Include

question 142

True/False

Incidental costs added to the costs of inventory can include import tariffs, freight, storage, and insurance.

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Definitions:

Notes Payable

Financial obligations or loans evidenced by promissory notes, to be repaid to the creditor at future dates.

Prepaid Insurance

An asset account on the balance sheet representing insurance payments made in advance for future coverage periods.

Adjusting Entry

An accounting record made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Weekly Wages

The total amount of earnings paid to an employee or group of employees on a weekly basis.