AICPA Exam CPA-Business Topic 1 Question 63 Discussion

Actual exam question for AICPA's CPA Business Environment and Concepts exam

Question #: 63
Topic #: 1

An example of a carrying cost is:

ADisruption of production schedules.

BQuantity discounts lost.

CHandling costs.

DObsolescence.

Show Suggested Answer

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.

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

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