Goods held on consignment are included in the inventory valuation of
A)the consignor.
B)the consignee.
C)both the consignor and the consignee.
D)neither the consignor nor the consignee.

Question

Quizplus · Accepted Answer

Goods held on consignment are not owned by the consignee until they are sold, so they should not be included in the consignee's inventory valuation. Instead, they should be included in the inventory valuation of the consignor, who still owns the goods until they are sold. Therefore, the correct choice is A – the consignor.

Goods Held on Consignment Are Included in the Inventory Valuation