Indicate whether each of the following statements is true or false. (Assume a perpetual inventory system.)________ a) Transportation-out cost is a part of selling and administrative costs.________ b) When transportation-out cost is incurred, the balance in the inventory account increases.________ c) When transportation-in cost is incurred, the balance in the inventory account increases.________ d) When the transportation-out cost is incurred, the balance in the cost of goods sold account increases.________ e. Transportation-in cost is a part of selling and administrative costs.
What will be an ideal response?
a) T b) F c) T d) F e) F
a) This is true. Transportation-out is a selling and administrative expense, or period cost.
b) This is false. Transportation-out is a selling and administrative expense that does not affect the inventory account.
c) This is true. Transportation-in increases the merchandise inventory account.
d) This is false. Transportation-out does not affect cost of goods sold. It is a selling and administrative expense.
e) This is false. Transportation-in is a product cost that is added to inventory and included in cost of goods sold.
You might also like to view...
List and briefly describe the five ordered levels of human needs according to Abraham Maslow
What will be an ideal response?
When you let the audience know that you understand what is important to them by using the "you" attitude, what characteristic of credibility is being displayed?
A) Honesty B) Objectivity C) Awareness of audience needs D) Endorsements E) Sincerity
An administrative agency can issue a guidance document to advise the public on the agency's legal and policy position.
Answer the following statement true (T) or false (F)
What is the list or database that a researcher uses to select people to be surveyed called?
a. relational database b. sampling frame c. random sample d. hierarchical database e. research directory