Inventoriable costs may be thought of as a pool of costs consisting of which two elements?

Question

Quizplus · Accepted Answer

Inventoriable costs include the cost of beginning inventory (inventory on hand at the start of the year) and the cost of goods purchased during the year that are added to inventory. Therefore, choice C is the correct option. Beginning inventory is the cost of inventory from the previous period that remained unsold and was carried forward. The cost of goods purchased includes the cost of all raw materials and manufacturing expenses incurred to produce or acquire the goods for sale.

Inventoriable Costs May Be Thought of as a Pool of Costs