Which of the Following Costs Usually Would Not Be Included

question 34

Multiple Choice

Which of the following costs usually would not be included in the inventory cost?

• A)Storage costs
• B)Related tariffs
• C)Invoice price less purchases discounts
• D)Insurance on goods in transit

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Definitions:

Commodity

An elementary good in the business sector that can be interchanged with others of a like kind.

Profit

The financial gain achieved when the amount earned from selling goods or services exceeds the costs associated with production or procurement.

Speeding Ticket

A penalty issued by law enforcement to drivers exceeding the legal speed limit.

Revenue Per Mile

A financial metric often used in transportation and delivery industries to measure the amount of income generated per mile of operation.