Which of the following costs usually would not be included in the inventory cost?
A)Storage costs
B)Related tariffs
C)Invoice price less purchases discounts
D)Insurance on goods in transit

Question

Quizplus · Accepted Answer

Storage costs are not directly associated with the cost of producing or acquiring inventory, and are therefore not included in the inventory cost. Instead, storage costs are considered period costs and are expensed as they are incurred. The other costs listed, such as related tariffs, invoice price less purchases discounts, and insurance on goods in transit are typically included in the inventory cost.

Which of the Following Costs Usually Would Not Be Included