Question:Why are direct costs added to the value of the inventory? 

A They are costs directly related to the creating of an inventory item and without them, there would be no inventory. 
B It is required by the IRS tax laws. 
C It helps reduce expenses on the income statement. 
D It inflates inventory values on the balance sheet which looks good to the investors. 

+ Answer
A 

+ Explanation
Answer not sure

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Md. Habib Ullah

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