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Talja
2 months ago
10

Merchandise inventory includes: (You may select more than one answer. Single click the box with the question mark to produce a c

heck mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. costs to purchase

b. costs to sell

c. shipping costs

d. costs to prepare for sale

e. cost of goods sold
Business
1 answer:
arsen [3.4K]2 months ago
5 0

The Merchandise Inventory account includes costs related to purchased goods, shipping and handling fees, transit insurance, and storage expenses.

Explanation:

Merchandise inventory consists of finished goods available for resale to consumers.

It encompasses all items that a company owns and intends to sell.

A merchandise enterprise:

  • Generates net income by purchasing and selling merchandise
  • Can acquire products from manufacturers to sell to retailers
  • May also buy from manufacturers and sell directly to end-users
  • Can operate as either a wholesaler or a retailer

Classified as a current asset, the Merchandise Inventory is vital for tracking.

The Merchandise Inventory account includes costs associated with purchases, shipping fees, preparation costs and handling expenses.

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Read 2 more answers
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