Final answer:
In the periodic inventory system, the cost of freight-in is not separately accounted for in COGS. Items included in GDP are hospital stays and new car sales, whereas life expectancy, unpaid child care, used car sales, and a greater variety of cheese are excluded. The value of raw materials like iron is included when the final product, such as a refrigerator, is sold.
Step-by-step explanation:
When using the periodic inventory system, the cost of freight-in for merchandise purchased during the period generally would not be separately accounted for in the computation of cost of goods sold (COGS). Instead, freight-in costs are included in the total cost of purchases, which is then used in the COGS formula at the end of the accounting period. However, trade discounts, cash discounts taken, and purchase returns and allowances are typically accounted for in the calculation of COGS. For example, trade discounts reduce the purchase price and thus the cost that would be added to inventory, while cash discounts reduce the actual cash outflow related to the purchases. Similarly, purchase returns and allowances decrease the cost of inventory that has been purchased.
In the context of what is included in GDP, certain items are considered while others are not. The cost of hospital stays and child care provided by a licensed center are included in GDP as they represent services exchanged for money within the reporting period. In contrast, the rise in life expectancy over time and child care provided by a grandmother are not included in GDP as they do not represent monetary transactions. The sale of a new car is included in GDP as it signifies a current-year production, whereas a used car sale is not since it represents a past production. The variety of cheese in supermarkets does not directly reflect a monetary transaction, hence it is not part of GDP. Lastly, the iron that goes into the steel for a refrigerator is not separately counted in GDP as it becomes a part of the final product's value which is included in GDP when the refrigerator is sold to the consumer.