Final answer:
The statement that storage costs are usually included in the value of inventory is true. These costs, along with purchasing and managing expenses, are factored into the inventory's valuation on the business's financial statements.
Step-by-step explanation:
The statement that storage costs are usually included in the value of the inventory is True. The concept of inventory covers not only the goods themselves but also the costs associated with storing these goods until they are sold. When businesses calculate the value of their inventory, they often include a variety of expenses such as the cost of purchasing the goods, along with the costs of storing, handling, and managing the inventory, which encompasses warehousing, security, insurance, depreciation, and potential obsolescence.
In the broader context of a business's financial statements, inventories represent a current asset. However, it's important for a business to manage inventory levels effectively. If business is booming and goods are selling quickly, inventory levels tend to decline. Conversely, if sales are lower than expected, inventories can rise, leading to increased storage costs and possibly affecting the profitability of the business.