Question

omCycle 1 Current Event x Google News-Business Lax+ s Taxation of Individuals and Business Entiles 2019 Edition Spiliker, et al, 10e, Business Indvance Which of the following statements Is INCORRECT concerming the unlform cost capitalization (UNICAP) rules? Click the answer you think is right the UNICAP rules selling, advertising, and research costs do NOT have to be allocated to Inventory these rules, businesses are generally required to capitalize more costs to inventory for tax purposes than under financial accounting rules The UNICAP rules are designed to reduce variations in the costs businesses Include In inventory. Under the UNICAP rules, only costs Incurred inside the production faclity are allocated to Inventory. Do you know the answet? I know it Think so No idea 7 8

Answer 1

Answer)

My answer is first option.

Under UNICAP, one should allocate all the costs i.e not only the inside the production facility but also outside the facility to the product.