Husker Rebar Co., a steel manufacturing company that produces reinforcing bar (or rebar) has hired you as a consultant. They are seeking your opinion on how to classify certain warehouse expenses. Husker Rebar Co. has six manufacturing plants that produce rebar. The production lines at the plants take scrap metal, melt it down, and form it into steel bars. After the steel bars are cut into standard lengths by a flying shear saw, the bars are moved into cooling beds located in the warehouses that are connected to end of each plant. There, the reinforcing bars cool, are bundled together, and await shipment. The rebar is shipped directly from the warehouse to customers. To date, management has included all costs associated with the warehouse (rent, utilities, warehouse employee wages, etc.) as inventory costs that are expensed through Cost of Goods Sold. In an attempt to increase their gross margins going forward, they are hoping to classify some (or all) of the warehouse costs as Selling, General and Administrative Costs. They have asked you to evaluate whether it would be acceptable under U.S. GAAP to classify some or all of the warehouse costs as Selling, General and Administrative Costs. Your job is to provide a written response and justification to Husker Rebar Co.