which of the following costs are not included in finished goods inventory course hero

Under both IFRS and US GAAP, the costs that are excluded from inventory include abnormal costs that are incurred as a result of material waste, labor or other production conversion inputs, storage costs (unless required as part of the production process), and all administrative overhead and selling costs. Click to see full answer

Full Answer

What are the two alternate costing concepts?

What is included in absorption costing?

Is income under absorption costing less than income under variable costing?

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What are the two alternate costing concepts?

In determining cost of goods sold, two alternate costing concepts can be used: absorption costing and variable costing.

What is included in absorption costing?

Under absorption costing, the cost of finished goods includes only direct materials, direct labor, and variable factory overhead.

Is income under absorption costing less than income under variable costing?

The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured

What are the two alternate costing concepts?

In determining cost of goods sold, two alternate costing concepts can be used: absorption costing and variable costing.

What is included in absorption costing?

Under absorption costing, the cost of finished goods includes only direct materials, direct labor, and variable factory overhead.

Is income under absorption costing less than income under variable costing?

The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured