Which of the Following Inventory Costing Methods Shown Below Is

question 119

Multiple Choice

Which of the following inventory costing methods shown below is required by GAAP (Generally Accepted Accounting Principles) for external financial reporting?

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

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide other financial services to individuals and businesses.

Negotiable

Capable of being transferred or assigned to another party in return for value received; often used in reference to financial instruments.

Restrictive Endorsement

An endorsement that limits the transferability of an instrument or controls the manner of payment under an instrument.

Transferability

The ease with which ownership rights of certain assets, securities, or financial instruments can be transferred from one party to another.