Inventory Valuation - Who Am I?

Front

Inventory is recorded at its cost price plus all costs associated with getting inventory into a condition and location ready for sale. What type of cost does this describe? Options: Product Cost, Period Cost, Both

Back

Both

Front

I have a higher Gross Profit as not all additional expenses are expensed in the current reporting period in which the inventory is sold. What type of cost does this refer to? (Product Cost, Period Cost)

Back

Product Cost

Front

I only apply to inventory that has been sold

Back

Product Cost

Front

I am not allocated because there is no logical basis to do so. Is this a Product Cost or a Period Cost?

Back

Period Cost

Front

I would be recorded in the inventory card: Product Cost, Period Cost

Back

Product Cost

Front

I apply to more than one line of inventory

Back

Period Cost

Front

I am not allocated because I am insignificant to decision making. What am I? (Options: Product Cost, Period Cost)

Back

Period Cost

Front

In subsequent reporting periods I would provide a higher gross profit as my additional costs were fully expensed in the period when the inventory was purchased. What type of cost is this? (Product Cost, Period Cost)

Back

Period Cost

Front

I provide a higher value for Inventory in the Balance Sheet in the current period. Options: Product Costs, Period Costs

Back

Product Costs

Front

I would appear as a separate item in the Trial Balance: Product Costs, Period Costs

Back

Period Costs