Transportation costs associated with acquiring inventory should be included in the inventory account if a perpetual inventory system is used.

Question

Quizplus · Accepted Answer

Transportation costs associated with acquiring inventory should be added to the cost of the inventory and included in the inventory account if a perpetual inventory system is used. This is because a perpetual inventory system tracks inventory balances continuously, and all costs associated with acquiring the inventory must be included in the inventory account to accurately reflect the current value of the inventory.

Transportation Costs Associated with Acquiring Inventory Should Be Included in the Inventory