Answer the Following Questions Using the Information Below

question 3

Multiple Choice

Answer the following questions using the information below:
Goldfarb Company produces a specialty item. Management has provided the following information:

-Which of the following inventory costing methods shown below is LEAST likely to cause undesirable incentives for managers to build up finished goods inventory?

• A)absorption costing
• B)variable costing
• C)throughput costing
• D)direct costing

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Definitions:

Political Jurisdictions

Defined areas under the authority of certain governmental entities where specific laws, regulations, and powers are applied and enforced.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential development, increased reliance on personal vehicles, and loss of natural habitats.

Low-Cost Gasoline

Gasoline that is available at a lower price, often due to government subsidies, regional availability, or lessened environmental regulations.

Government-Funded Highways

Roads and transport routes built and maintained by the government using public funds.