The account Inventory includes the shipping costs to the seller.

Question

Quizplus · Accepted Answer

Inventory costs include the cost of purchasing the items, transportation-in costs (shipping costs to get the inventory to the seller), and any other costs necessary to get the goods in place and ready for sale. However, the account specifically named "Inventory" typically reflects the cost of the items themselves, not the additional shipping costs to the seller, which are often recorded separately as part of the inventory acquisition cost.

The Account Inventory Includes the Shipping Costs to the Seller