The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories?     a. Administrative overheads that do not contribute to bringing inventories to their present location and condition. b. Abnormal amounts of wasted materials, labor or other production costs. c. Storage costs unnecessary in its production process.

Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past decision, contractual agreement, and government regulations. a. true b. false 2.) Product costs: a. are always expensed in the same period in which they are incurred. b. are inventoriable costs. c. vary directly with changes in cost driver. d. are always charged to an asset account in the same period in which they are incurred. 3. Controllable costs are cost items which can be regulated depending on the level of management one is in. a. True b. False b. False

When the sale of finished goods is recorded, the balance in which of the following accounts will decrease? None of the listed choices are correct Work-in-Process Sales Revenue Cost of Goods Sold Raw Materials Inventory Factory Overhead Finished Goods Inventory

Which would NOT be relevant in a make- or- buy decision?a) factory deprciation b) direct materials c) variable overhead d) direct labor

The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal loss d. Scrap

Which of the following costs is relevant in deciding whether to accept a bid to sell obsolete items remaining in inventory?   A .Direct materials cost of producing the units B. Engineering costs for design of the units C. Shipping costs D. Product-testing costs

Which of the following costs is not capitalized as inventory?  a. costs of delivering finished goods       b. factory (manufacturing) overhead       c. insurance of factory building and equipment       d. factory amortization

If a company incurred a significant repairs and maintenance expense for a plant equipment ( used in production ), what is the effect on inventory ? A) finished goods will increase B) work -in - process inventory will decrease. C) finished goods inventory will decrease D) raw materials inventory will increase

Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as: a. a product cost that is fixed with respect to the company's output. b. a period cost that is fixed with respect to the company's output. c. a product cost that is variable with respect to the company's output. d. a period cost that is variable with respect to the company's output.

TRUE OR FALSE STATEMENT 1: If the ending inventory of finished goods is understated, net  income will be overstated. STATEMENT 2:  Manufacturing overhead combined with direct materials is known as conversion cost.