Question

What things are factored into selling cost of goods and ending inventory?

Answer 1

The selling cost of goods and ending inventory is influenced by factors such as production costs, prices of related goods, sellers' expectations, and the number of sellers.

Step-by-step explanation:

The selling cost of goods and ending inventory is influenced by several factors:

1. The costs of production: This includes expenses such as raw materials, labor, and overhead costs that are incurred in the production process.
2. The prices of related goods in production: The cost of inputs, such as materials or components used in the production of goods, can impact the selling cost of finished goods and the value of ending inventory.
3. Sellers' expectations: The expectations of sellers about future demand and market conditions can influence pricing decisions and the estimation of ending inventory value.
4. The number of sellers: The level of competition in the market can affect the pricing strategies and inventory management practices of sellers.

These factors interact to determine the selling cost of goods and the value of ending inventory.