For merchandising companies, inventoriable costs include ________.
A) selling expenses
B) shipping (incoming) costs to acquire merchandise
C) distribution costs
D) outgoing freight and handling costs

Question

Quizplus · Accepted Answer

Inventoriable costs include the cost of purchasing and acquiring merchandise or inventory, such as incoming shipping costs. Selling expenses (A) and distribution costs (C) are not considered inventoriable costs, as they are expenses related to the sales and distribution of the inventory, rather than the acquisition of it. Outgoing freight and handling costs (D) are also not considered inventoriable costs, as they are expenses related to the shipping and distribution of the inventory, rather than the acquisition of it.

For Merchandising Companies, Inventoriable Costs Include ________