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  3. the cost of an inventory item includes its invoice

The cost of an inventory item includes its invoice cost minus any discount, plus any...

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Accounting

The cost of an inventory item includes its invoice cost minus any discount, plus any other costs, such as,
shipping, storage, import duties, and insurance.
() true
() false
Other costs for acquiring merchandise inventory, such as import duties, shipping, storage, and insurance,
should not be added to the cost of inventory.
() true
() false
Companies never take a physical count of inventory, but rather solely rely on inventory records to determine
the inventory value.
(o) true
() false
The weighted average method matches the costs of inventory items with the revenue generated by the sale
of the inventory items.
(o) true
() false
The choice of costing method will impact both the balance sheet and the income statement.
() true
() false
Understating ending inventory understates both current and total assets.
() true
() false
A high inventory turnover ratio is preferable if inventory is adequate to meet demand.
() true
() false
The inventory turnover ratio is computed by dividing cost of goods sold by average inventory.
() true
() false
The days' sales in inventory ratio is computed by dividing ending inventory by cost of goods sold and
multiplying the result by 365.
() true
(c) false
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