Under GAAP,only manufacturing costs can be assigned to inventories in the financial statements.

Name: Under GAAP,only manufacturing costs can be assigned to inventories in the financial statements.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Under GAAP, only costs directly related to the production of goods, such as raw materials, direct labor, and manufacturing overhead, can be capitalized as inventory costs. Non-manufacturing costs, like selling and administrative expenses, are not included in inventory valuation.

Under GAAP,only Manufacturing Costs Can Be Assigned to Inventories in the Financial