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when a perpetual system is in used and transportation cot is incurred to obtain inventory, the transportation cost is:

User Bmurauer
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Answer: a. added to Inventory.

Step-by-step explanation:

A Perpetual Inventory system is one where the inventory records of a company are updated as soon as inventory is either received or sold thus ensuring that the inventory balance is more accurate.

When using a perpetual inventory system, a key feature is that the transportation costs of the inventory are added to the inventory as part of the costs of acquiring the inventory unlike with the periodic system where a separate account will be maintained.

User Duvet
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