Question

Until the product is sold, the cost to prepare merchandise for sale is part of:

a. merchandise inventory
b. selling costs
c. cost of good sold
d. administrative costs
With Explanation please

Answer 1

B) Selling costs

Step-by-step explanation:

Organizations need to follow the entirety of the expenses that are legitimately engaged with delivering their items available to be purchased, notwithstanding other operational expenses. These immediate expenses are known as the expense of merchandise sold (COGS), and this figure shows up in the organization's benefit and misfortune articulation (P&L). It's likewise a significant piece of the data. The organization must give an account of its expense form.

The expense of extra items acquired or created during the year is included, and afterward, stock toward the year's end is subtracted.