Cost of inventory is a sum of
A)Cost of purchase and cost of conversion
B)Direct cost, indirect cost and other cost
C)Cost of purchase, cost of conversion and other cost to bring the material to the present location
D)None of these

Question

Quizplus · Accepted Answer

The cost of inventory includes the cost of purchase (buying price, import duties, transport, handling), cost of conversion (direct labor, manufacturing overheads), and other costs necessary to bring the materials to their present location and condition.

Cost of Inventory Is a Sum of