Question

Multiple Choice

The basic calculation for Cost of Goods Sold for a retail business is:
O Beginning Inventory - Inventory Purchases - End Inventory = Cost of Goods Sold
O Beginning Inventory - Inventory Purchases + End Inventory = Cost of Goods Sold
O Beginning Inventory + Inventory Purchases + End Inventory = Cost of Goods Sold
O Beginning Inventory + Inventory Purchases - End Inventory = Cost of Goods Sold

Answer 1

Cost of Goods Sold

Cost of goods sold, or cost of sales, can be useful when writing statements of financial position or determining the financial performance of a business.

cost of goods sold = opening stock + purchases – closing stock

or:

cost of goods sold = beginning inventory + inventory purchases - end inventory