Which of the Following Inventory Costing Methods Shown Below Is

question 109

Multiple Choice

Which of the following inventory costing methods shown below is most 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:

Set of Data

A collection of related information or variables, typically numeric, organized for analysis.

Mean

A statistical measure that represents the average value of a set of numbers.

Set of Data

A collection of data points or values that have been gathered to provide information for analysis.

Median

The middle value in a sorted list of numbers, which separates the higher half from the lower half of the dataset.