Which one of the following types of costs is excluded from the cost of inventory that is routinely manufactured?
A)interest
B)raw materials
C)normal spoilage
D)insurance

Question

Quizplus · Accepted Answer

Interest costs are not directly related to the manufacturing process of inventory and are therefore excluded from the cost of inventory. Raw materials, normal spoilage, and insurance are all directly related to the manufacturing process and would be included in the cost of inventory.

Which One of the Following Types of Costs Is Excluded