For manufacturing firms, inventoriable costs include ________.
A) plant supervisor salaries
B) advertising costs to promote the sale of finished goods
C) costs of dealing with customer questions about warranties after the sale
D) distribution costs such the cost of operating a fleet of delivery vehicles

Question

Quizplus · Accepted Answer

Inventoriable costs for manufacturing firms include all costs that are directly involved in the manufacturing process, including raw materials, direct labor, and manufacturing overhead. Plant supervisor salaries fall under manufacturing overhead, making them an inventoriable cost. Other options like advertising, customer service, and distribution costs are considered period costs, not inventoriable costs.

For Manufacturing Firms, Inventoriable Costs Include ________