Using direct costing, the value of ending inventory of finished goods is:
A) $100,000
B) $120,000
C) $140,000
D) $220,000

Question

Quizplus · Accepted Answer

Direct costing, also known as variable costing, includes only variable manufacturing costs in the cost of inventory. Without additional information on the specific costs, $100,000 is the most likely choice for the value of ending inventory using direct costing.

Using Direct Costing, the Value of Ending Inventory of Finished