The cost of the transportation of inventory purchased:
A)Are expensed in the current period.
B)Increases income.
C)Becomes part of the cost of inventory.
D)Reduces the sales price.

Question

Quizplus · Accepted Answer

The cost of transportation of inventory purchased becomes part of the cost of inventory, as it is a necessary cost incurred to acquire the inventory and get it to the company's facilities. This cost is then allocated to the cost of goods sold when the inventory is sold.

The Cost of the Transportation of Inventory Purchased