The cost of an inventory item includes its invoice cost plus any added or incidental costs necessary to put it in a place and condition for sale, and minus any discount.

Name: The cost of an inventory item includes its invoice cost plus any added or incidental costs necessary to put it in a place and condition for sale, and minus any discount.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is the definition of the cost of an inventory item as per generally accepted accounting principles (GAAP).

The Cost of an Inventory Item Includes Its Invoice Cost