The cost of acquiring inventory includes
A)setup costs for goods produced internally.
B)cost of insurance on the warehouse for inventory.
C)cost of not having a product when a customer wants one.
D)cost of obsolescence.

Question

Quizplus · Accepted Answer

Setup costs for goods produced internally are considered part of the cost of acquiring inventory because they are directly associated with the preparation of production facilities to manufacture a product.

The Cost of Acquiring Inventory Includes