Some companies choose to avoid assigning incidental costs of

Some companies choose to avoid assigning incidental costs of acquiring merchandise to inventory by recording them as cost of goods sold when incurred. The principle that supports this is called:

Multiple Choice

The materiality constraint.

The expense recognition principle.

The conservation constraint principle.

The lower of cost or market principle.

The cost principle.

Solution

Solution:

\"The Materiality Constraint\" principal supports the avoidance of assigning incidental costs of acquiring merchandise to inventory by recording them as cost of goods sold when incurred.

Hence first option is correct.