In a perpetual inventory system,paying transportation charges on goods purchased FOB shipping point would have which of the following effects?
A)decrease operating expenses.
B)increase selling,general,and administrative expenses.
C)decrease cost of goods sold.
D)increase inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, paying transportation charges on goods purchased FOB shipping point would increase the cost of inventory as it becomes a part of the cost of goods purchased.

In a Perpetual Inventory System,paying Transportation Charges on Goods Purchased