the costs of storing and delivering finished goods are allocated to the finished goods account True...

Question

Question

the costs of storing and delivering finished goods are allocated to the finished goods account

True or False

business accounting

Answer 1

Answer #1

Answer

--False.

--Cost of storing and delivering finished goods are considered to be 'selling expenses'.

--Selling Expenses are period cost and is not included in the cost of products produced.

--Thats why Cost of storing and delivering finished goods is NOT ALLOCATED to finished goods account.

Answer 2

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