Which of the following costs is included in the cost of acquiring inventory?
A)setup costs for goods produced internally
B)cost of insurance on the warehouse for inventory
C)cost of not having a product when a customer wants one
D)cost of obsolescence

Question

Quizplus · Accepted Answer

Setup costs for goods produced internally are considered part of the cost of manufacturing those goods, and thus are included in the cost of acquiring inventory. These costs are directly associated with the production process.

Which of the Following Costs Is Included in the Cost