Cyber Monday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location PL
Mob_nav_barsMENU

AICPA Exam CPA-Business Topic 3 Question 89 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 89
Topic #: 3
[All CPA-Business Questions]

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

Show Suggested Answer Hide Answer
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 Maricela at Jun 02, 2024, 12:39 AM

Limited Time Offer

25%

Off

Get Premium CPA-Business Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Marjory
5 months ago
Shipping costs? What is this, a riddle? Next thing you know, they'll be asking if the cost of the warehouse itself is a carrying cost. Let's keep it simple, folks!
upvoted 0 times
Nieves
5 months ago
B) Cost of capital invested in the inventory.
upvoted 0 times
...
Brent
5 months ago
A) Insurance costs.
upvoted 0 times
...
...
Yoko
6 months ago
Shipping costs? Really? That's like saying the cost of buying the inventory in the first place is a carrying cost. Come on, this is basic inventory management stuff!
upvoted 0 times
Nobuko
6 months ago
C) Cost of obsolescence.
upvoted 0 times
...
Goldie
6 months ago
B) Cost of capital invested in the inventory.
upvoted 0 times
...
Isabelle
6 months ago
A) Insurance costs.
upvoted 0 times
...
...
Phung
6 months ago
Hmm, I'm not too sure about this one. Isn't shipping a cost associated with maintaining the inventory? I'll have to think about this one a bit more.
upvoted 0 times
...
Gary
6 months ago
I disagree, I believe the correct answer is C) Cost of obsolescence because it is not directly related to carrying the inventory.
upvoted 0 times
...
Pamela
6 months ago
Haha, this is easy! Shipping costs are definitely not a carrying cost. That's just the cost of getting the goods in the first place. The real carrying costs are the ones that keep the inventory on the shelves.
upvoted 0 times
...
Solange
6 months ago
Well, clearly the shipping costs are not a carrying cost. I mean, that's just the cost of getting the inventory to the warehouse, right?
upvoted 0 times
Ivette
5 months ago
C) Cost of obsolescence.
upvoted 0 times
...
Ashlyn
5 months ago
B) Cost of capital invested in the inventory.
upvoted 0 times
...
Arlene
5 months ago
C) Cost of obsolescence.
upvoted 0 times
...
Carey
6 months ago
B) Cost of capital invested in the inventory.
upvoted 0 times
...
Dewitt
6 months ago
A) Insurance costs.
upvoted 0 times
...
Bernardo
6 months ago
C) Cost of obsolescence.
upvoted 0 times
...
Ashley
6 months ago
B) Cost of capital invested in the inventory.
upvoted 0 times
...
Mammie
6 months ago
A) Insurance costs.
upvoted 0 times
...
Pearly
6 months ago
A) Insurance costs.
upvoted 0 times
...
...
Marti
6 months ago
I think the answer is D) Shipping costs.
upvoted 0 times
...

Save Cancel
az-700  pass4success  az-104  200-301  200-201  cissp  350-401  350-201  350-501  350-601  350-801  350-901  az-720  az-305  pl-300  

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77