美国CPA模拟试题：Business（四）

Which of the following costing methods will yield the lowest inventory value?

a. Absorption.

b. Variable.

c. Hybrid.

d. Process.

答案：B

Explanation

Choice "b" is correct. Variable costing typically produces the lowest inventory values since only variable costs are capitalized. Other methodologies of inventory accounting will account for fixed costs in inventory and result in greater values than variable costing.

Choice "a" is incorrect. Absorption costing accounts for fixed manufacturing overhead costs in inventory and produces inventory values greater than variable costing.

Choice "c" is incorrect. Hybrid costing methods may blend different inventory methodologies but would likely include valuations greater than pure direct cost approaches that only include variable costs.

Choice "d" is incorrect. Process costing methods represent a cost accumulation approach that uses any number of assumptions. Process costing will normally include fixed costs in the valuation of inventory and would thereby result in higher amounts than direct costing approaches.