Question

b. Do retailers have a similar rule? A. Retailers whose average gross receipts for the three preceding years exceeds $25 million must include in inventory a portion of purchasing, warehousing, packaging, and related administrative costs. O C. Retailers whose average gross receipts for the three preceding years exceeds S8 million must include in inventory a portion of factory repairs and maintenance, utilities, rent and other costs relating to the 。D. Retailers whose average gross receipts or the three preceding years exceeds S1 million must include n inventory a portion o actory repairs and maintenance, utilities, rent and other costs relating to the B. Retailers whose average gross receipts for the three preceding years exceeds $5 million must include in inventory a portion of purchasing, warehousing, packaging, and related administrative costs manufacturing process manufacturing process. c. Are these rules the same as for financial accounting? If not, explain. O A. No. Financial accounting does not require retailers to include purchasing, warehousing. packaging, and related administrative costs in inventory. Financial accounting rules have not required manufacturers to inventory employee benefits and certain administration costs that must now be included in inventory for tax purposes. Similarly, financial accounting rules do not require that interest be added to the cost of inventory with long-term production periods. O B. Yes and No. Financial accounting does require retailers to include purchasing, warehousing, packaging, and related administrative costs in inventory. Financial accounting rules also require manufacturers to inventory employee benefits and certain administration costs for purposes. However, financial accounting rules do not require that interest be added to the cost of inventory with long-term production

Answer 1

Answer of problem b is option ( D). That Retailers whose average gross receipts for the three prceding years exceeds $1 million must include in inventory a portion of factory repairs and maintenance utilities rent and other costs relating to the manufacturing process.
Answer of problem c is option (A) . That No, Financial accounting does not require retailers to include purchasing warehousing, packaging and related administrative costs in inventory. Financial accounting rules have not required manufacturers to inventory employee benefits and certain administration costs that must now be included in inventory for tax purpose. Similarly financial accounting rules do not require that interest be added to the cost of inventory with long term production periods.