Chapter 6, Problem 3DQ

To determine

Concept introduction:

Inventory Incidental Costs and Accounting Principles:

Accounting Principles are guidelines on the basis of which a company draws their financial statements. The principle of Materiality is going to be discussed in detail for this question because of its relevance. Incidental Expenses refer to expenses like Transport, cost of loading, unloading etc.

To discuss:

Incidental Costs, and the extent to which they can be ignored.