Asked by Blake Archer on May 20, 2024
Verified
Which of the following items would not affect the cost of inventory purchased during the period?
A) quantity discounts
B) sales discounts
C) freight in
D) sales commissions
Inventory Cost
The total cost incurred to acquire, hold, and convert raw materials into finished goods, including costs of purchase, handling, and storage.
Sales Commissions
Payments made to sales employees as a percentage of the sales they generate, used as an incentive to drive sales.
Quantity Discounts
Price reductions offered to customers for purchasing goods or services in large quantities.
- Ascertain which components are considered or not considered in the computation of the final inventory cost.
Verified Answer
Learning Objectives
- Ascertain which components are considered or not considered in the computation of the final inventory cost.
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