Multiple choice

The cost also known as inventoriable cost is

  1. direct Labour cost

  2. cost of goods sold

  3. administrative cost

  4. fixed cost

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 In inventory, goods are included. So when goods are sold, the cost of goods sold is calculated and matched against sales revenue. Since cost of goods is typically assigned to inventories, it is also known as inventoriable cost.

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