Which of the following is not an inventoriable cost of a manufacturer?
A) Sales commissions paid to sales representatives who sell the products made by the manufacturer
B) Wages paid to assembly-line workers
C) Plant depreciation incurred
D) Property taxes on plant

Question

Quizplus · Accepted Answer

Sales commissions paid to sales representatives is not an inventoriable cost because it is considered a selling expense and is expensed in the period in which it is incurred, rather than being included in the cost of goods sold. The other options are all typical inventoriable costs for a manufacturer. Wages paid to assembly-line workers contribute to the direct labor cost; plant depreciation and property taxes are both considered part of the manufacturing overhead cost.

Which of the Following Is Not an Inventoriable Cost of a Manufacturer