Some Companies Choose to Avoid Assigning Incidental Costs of Acquiring

question 103

Multiple Choice

Some companies choose to avoid assigning incidental costs of acquiring merchandise to inventory by recording them as expenses when incurred. The argument that supports this is called:

• A) The matching principle.
• B) The materiality constraint.
• C) The cost principle.
• D) The conservation constraint principle.
• E) The lower of cost or market principle.

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