Which of the following would not be a component of the year-end inventory balance?
A)Freight-in costs.
B)Inventory inspection costs.
C)Inventory preparation costs.
D)Inventory-related selling costs.

Question

Quizplus · Accepted Answer

Inventory-related selling costs are not included in the year-end inventory balance because they are considered expenses that occur after the inventory has been sold. The other choices (A, B, and C) are all costs directly related to the acquisition and preparation of inventory and would therefore be included in the year-end inventory balance.

Which of the Following Would Not Be a Component of the Year-End