The cost of inventory is made up of
A)cost to purchase inventory only.
B)cost of purchase and allocated direct labour only.
C)cost of purchase, allocated direct labour, and allocated overhead.
D)cost of allocated direct labour and allocated overhead only.

Question

Quizplus · Accepted Answer

The cost of inventory includes not only the cost of purchase, but also the cost of direct labor and overhead allocated to the production of the inventory. Therefore, option C is the correct choice.

The Cost of Inventory Is Made Up of