Purchase discounts,freight in and receiving costs ________.
A) are considered selling costs
B) should not be considered when setting a cost standard for materials
C) are used when setting a cost standard for materials
D) are determined by a company's accountants and human resource managers

Question

Quizplus · Accepted Answer

Purchase discounts, freight in, and receiving costs are all part of the cost of acquiring materials and should be considered when setting a cost standard for materials. They are not considered selling costs, as selling costs are associated with marketing and advertising the finished product. These costs are not determined by the company's accountants and human resource managers; rather, they are determined by the purchasing department and the logistics team.

Purchase Discounts,freight in and Receiving Costs ________