Which one of the following types of costs is most likely to be included in determining the cost of inventory?
A)freight-in costs
B)freight-out costs
C)interest cost for amounts borrowed to finance the purchase of inventory
D)marketing costs

Question

Quizplus · Accepted Answer

Freight-in costs (also known as shipping or transportation costs) are directly related to getting the inventory to the warehouse or store and are therefore included in determining the cost of inventory. Freight-out costs, interest cost for financing, and marketing costs are not directly related to the physical inventory and are typically considered separate expenses.

Which One of the Following Types of Costs Is Most