Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 6 - Reporting and Analyzing Inventory - Questions: 7

Answer

The primary basis of accounting for inventories is that inventory is accounted for at Cost.

Work Step by Step

Cost includes all expenditure necessary to acquire goods and place them in condition ready for sale. The major objective in accounting for inventories is to arrive at correct value of goods sold.
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