The Ramien Store held inventory items at the end of 2016.Which items should Ramien include as part of its total inventory cost?
A) Freight incurred in shipping goods to customers.
B) Cost of storing inventory before it is sold.
C) Cost of salaries of clerks that sell the inventory items.
D) Annual income taxes paid for operations.

Question

Quizplus · Accepted Answer

Cost of storing inventory before it is sold should be included in the total inventory cost as it is a necessary expense to prepare the goods for sale.

The Ramien Store Held Inventory Items at the End of 2016.Which