Asked by Junwei Zheng on Jul 07, 2024
Verified
Which of the following costs is not included as inventory on the balance sheet?
A) Raw materials to be used in the manufacturing process.
B) Work in process.
C) Finished goods.
D) Freight-out costs for finished goods sent to retailers.
Freight-out Costs
Expenses associated with the delivery of merchandise from a seller to a buyer; also known as shipping costs or delivery expenses.
Inventory
Inventory represents the goods and materials a business holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.
Balance Sheet
A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time.
- Understand the classification of inventory costs and their impact on financial statements.
Verified Answer
Learning Objectives
- Understand the classification of inventory costs and their impact on financial statements.
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