1a. All of the following costs would be included in the cost of inventory EXCEPT for:

A)insurance while in transit from seller.

B)costs to get inventory ready for sale.

C)taxes paid on the purchase price.

D)sales commission paid to salesperson when the inventory is sold.

1b. Under the average-cost inventory method, to determine the average cost per unit:

A)the cost of beginning inventory is divided by the number of units available.

B)the cost of beginning inventory plus the cost of purchases is divided by the number of units sold.

C)the cost of purchases for the period axe divided by the number of units available.

D)the cost of beginning inventory plus the cost of purchases is divided by the number of units available.

1c. Potential liabilities that depend on future events arising out of past events are called:

A) long-term liabilities.

B) estimated liabilities.

C) contingent liabilities.

D) current liabilities.