The Ramien Store held inventory items at the end of 2017.Which items should Ramien include as part of its total inventory cost?
A)Freight incurred in shipping goods to customers
B)Annual income taxes paid for operations
C)Excise taxes and sales taxes paid to purchase the inventory
D)Cost of salaries of clerks that sell the inventory items

Question

Quizplus · Accepted Answer

Ramien should include excise taxes and sales taxes paid to purchase the inventory as part of its total inventory cost, as these taxes are directly related to the cost of acquiring the inventory. Freight incurred in shipping goods to customers, annual income taxes paid for operations, and cost of salaries of clerks that sell the inventory items are not directly related to the cost of acquiring and holding inventory at the end of the year, and therefore should not be included in the total inventory cost.

The Ramien Store Held Inventory Items at the End of 2017.Which