alleryStart learning →When may storage costs be included in the cost of inventories?
AWhen production needs it before next stage
BNever, as storage is always an expense
CWhenever goods are kept in a warehouse
DOnly when the goods are slow-moving
Answer & Solution
Correct answer: A. When production needs it before next stage
Storage is a cost only when the production process itself needs it before the next stage, such as maturing stock.
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