Match the costs that might be included as part of the cost of inventory to the listed accounting treatment. (Choices may be used more than once.)
-Prices are rising; ending inventory is lower with this method.

Question

Quizplus · Accepted Answer

Prices are rising, which means that the cost of inventory is increasing. Therefore, any costs that are subtracted from inventory cost would result in a lower ending inventory value, reflecting the higher prices. This could include things like purchase returns, discounts, or allowances.

Match the Costs That Might Be Included as Part of the Cost