Response to the following questions:
1. Which of these costs does a company include in its inventory cost? (a) Sales commissions, (b) Supervisor's salary, (c) Freight charges, (d) Indirect factory production labor, (e) Storage costs, (f) Corporate executive salaries.
2. Discuss the advantages and disadvantages of the two methods of accounting for purchases discounts taken in regard to management's needs, inventory cost, and the valuation of accounts payable.