Incidental costs of inventory
A) Can be assigned to every unit
B) May be immaterial
C) Can be allocated to cost of goods sold
D) Are subject to the materiality principle
E) All of the above

Question

Quizplus · Accepted Answer

Incidental costs of inventory can indeed be assigned to every unit, may be considered immaterial depending on their size relative to the total cost, can be allocated to the cost of goods sold as part of the inventory costing process, and are subject to the materiality principle, which dictates that accounting for such costs depends on their significance to the financial statements.

Incidental Costs of Inventory