Which of the following costs does not become a part of inventory of a manufacturer?
A)The cost of raw materials used.
B)The cost of factory overhead.
C)The cost of rent on the factory building.
D)Rent on corporate headquarters.

Question

Quizplus · Accepted Answer

Rent on corporate headquarters is not a cost associated with manufacturing and therefore would not become a part of inventory. The cost of raw materials used, the cost of factory overhead, and the cost of rent on the factory building are all costs associated with the manufacturing process and would become a part of inventory.

Which of the Following Costs Does Not Become a Part