The cost of inventory is limited to the purchase price less any purchase discounts.

Name: The cost of inventory is limited to the purchase price less any purchase discounts.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

The cost of inventory includes not only the purchase price but also any additional costs incurred in bringing the product to its present location and condition, such as transportation, handling, and storage costs. Discounts received on the purchase may be deducted from the purchase price to arrive at the cost of inventory.

The Cost of Inventory Is Limited to the Purchase Price