Which of the following should usually be considered when calculating the cost of ending inventory?
A)Inventory that is subject to special sales agreements.
B)The ownership for inventory in transit at the balance sheet date.
C)Discounts and vendor rebates.
D)All of these

Question

Quizplus · Accepted Answer

All of these factors should be considered when calculating the cost of ending inventory. Inventory that is subject to special sales agreements may be sold at a different price than regular inventory and therefore may have a different cost. The ownership for inventory in transit at the balance sheet date determines who bears the risk of loss and should be considered in the cost calculation. Discounts and vendor rebates may affect the cost of the inventory and should be factored in as well.

Which of the Following Should Usually Be Considered When Calculating