Which of the following would not be included in inventory costs?
A) Shelving to hold the inventory.
B) The cost of insurance taken out during the time that inventory is in transit.
C) The cost of storing inventory before it is ready to be sold.
D) Freight costs incurred by the buyer in shipping inventory to its place of business.

Question

Quizplus · Accepted Answer

Shelving to hold the inventory would be considered a fixed asset and not an inventory cost. The other options are all examples of inventory costs.

Which of the Following Would Not Be Included in Inventory