Inventoriable costs may be thought of as a pool of costs consisting of which two elements?
A) The cost of beginning inventory and the cost of ending inventory
B) The cost of ending inventory and the cost of goods purchased during the year
C) The cost of beginning inventory and the cost of goods purchased during the year
D) The difference between the costs of goods purchased and the cost of goods sold during the year

Question

Quizplus · Accepted Answer

Inventoriable costs consist of the cost of beginning inventory and the cost of goods purchased during the year. This total pool of costs is used to determine the cost of goods sold and the cost of ending inventory. The cost of ending inventory is not included in the pool of inventoriable costs, as it is simply a subset of those costs.

Inventoriable Costs May Be Thought of as a Pool of Costs