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AICPA CPA-Business Exam - Topic 1 Question 63 Discussion

Posted by Helene on Dec 27, 2022 at 10:42 PM

An example of a carrying cost is:

Suggested Answer: D

Choice 'd' is correct. Obsolescence is an example of a carrying cost.

Choices 'a', 'b', and 'c' are incorrect. Carrying cost is not:

A Disruption of production schedules.

B Quantity discounts lost.

C Handling costs.


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13 comments · newest first
WI
Willodean 11 months ago
Quantity discounts lost can be a big deal too!
AR
Arlyne 11 months ago
Disruption of production schedules isn't a carrying cost.
TR
Tracie 12 months ago
Wait, are we sure about that?
ED
Edelmira 12 months ago
I agree, C is the right choice!
GI
Giuseppe 12 months ago
Handling costs are definitely a carrying cost.
ZA
Zana 1 year ago
I recall that handling costs are definitely part of carrying costs, but I also feel like quantity discounts lost could be relevant too.
LE
Lettie 1 year ago
I'm confused about the difference between carrying costs and other costs. I thought disruption of production schedules might fit, but now I'm not so sure.
CL
Cletus 1 year ago
I remember practicing a question about costs, and I think obsolescence could be a type of carrying cost since it relates to inventory loss over time.
KE
Keva 1 year ago
I think carrying costs are related to holding inventory, so I'm leaning towards handling costs, but I'm not entirely sure.
SH
Sharen 1 year ago
Hmm, I'm a bit unsure about this one. The question is asking about the best approach, and it seems like using both push and pull methods could be the safest option to ensure participants can always get their money.
PE
Pearlie 1 year ago
This is a tricky one, but I'm going to give it my best shot. I'll read through the options and try to determine which one most directly addresses the importance of the link between manager rewards and effective communication.
LA
Lachelle 1 year ago
I've got a good feeling about this. The data source inventory is where you'd define who gets to see the network data, as part of the overall deployment planning.
DO
Dorothy 1 year ago
Alright, let's think this through step-by-step. ACK is an Amazon service, so it's likely to support common AWS storage options like Cloud Disk, OSS, and HDFS. I'll start by selecting those and see if I can find the other two.
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