A company records inventory at the gross invoice price.Theoretically,how should the following affect the costs in inventory? Warehousing Cash Discounts
Costs Available

Question

Quizplus · Accepted Answer

Warehousing costs should be included in the cost of inventory, increasing the costs available for sale. Cash discounts, if taken, decrease the cost of purchases and thus the costs available for sale.

A Company Records Inventory at the Gross Invoice Price