Which of the following costs will not affect cost of goods sold?
A)Inventory inspection costs.
B)Inventory preparation costs.
C)Inventory-related selling costs.
D)Freight charges incurred to bring inventory to the warehouse.

Question

Quizplus · Accepted Answer

Inventory-related selling costs do not affect the cost of goods sold (COGS) because COGS includes the direct costs attributable to the production of the goods sold by a company. Selling costs are considered operating expenses, not part of the cost of inventory.

Which of the Following Costs Will Not Affect Cost of Goods