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AICPA Exam CPA-Business Topic 3 Question 82 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 82
Topic #: 3
[All CPA-Business Questions]

Which one of the following would not be considered a carrying cost associated with inventory?

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Suggested Answer: D

Choice 'd' is correct. Shipping costs (which are selling costs) would not be considered a carrying cost associated with inventory.

Choices 'a', 'b', and 'c' are incorrect. Each of the following would be considered a carrying cost associated with inventory.

A Insurance costs.

B Cost of capital invested in the inventory.

C Cost of obsolescence.


by Eun at Mar 09, 2024, 01:36 PM

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Martha
10 months ago
Hmm, you may be right. It does make sense to consider the cost of capital invested in the inventory as a carrying cost.
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Zachary
10 months ago
I'm not sure, but I think B) Cost of capital invested in the inventory is also a carrying cost.
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Rupert
10 months ago
I disagree, I believe it's C) Cost of obsolescence.
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Martha
11 months ago
I think the answer is D) Shipping costs.
upvoted 0 times
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Micaela
11 months ago
Hmm, you may be right. It does make sense to consider the cost of capital invested in the inventory as a carrying cost.
upvoted 0 times
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Amie
11 months ago
I'm not sure, but I think B) Cost of capital invested in the inventory is also a carrying cost.
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Ulysses
11 months ago
I disagree, I believe it's C) Cost of obsolescence.
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Micaela
12 months ago
I think the answer is D) Shipping costs.
upvoted 0 times
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