Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Incidental costs sometimes are ignored in inventory costing because Incidental expenses are minor, non-budgeted expenses that are not directly related to primary service and do not arise during the normal course. Incidental cost which include the costs of transportation, meals, and lodging are common when an employee travels for business Inventory costs.
By calculating the most economic order quantity the firm attempts to determine the order size that will minimize the total inventory. Such practice of ignoring the incidental cost is permitted by materiality constraint because such cost will not affect the decisions of the business entity costs.
Materiality constraint means that transactions of little importance should not be recorded. A transaction may be recorded, but its importance and significance should be kept in mind. For example, a newly purchased pencil is an asset of the business. Whenever the pencil is used, a part of the asset is consumed.
TO learn more about Incidental costs and Materiality constraint here
https://brainly.com/question/28178996
#SPJ4
Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
