Final answer:
The cost of goods available for sale indeed comprises both the beginning inventory and the cost of goods purchased, which is a true statement crucial for inventory accounting and insight into economic conditions.
Step-by-step explanation:
The statement "The cost of goods available for sale consists of the beginning inventory plus the cost of goods purchased" is true. This financial concept is critical in understanding how businesses calculate the total value of inventory that could be sold during a given period. In practice, this amount is a combination of the goods a company starts with at the beginning of a period (beginning inventory) and any additional goods it buys or manufactures for resale (purchases). This calculation prevents the problem of double counting and is essential for accurate record-keeping and reporting.
Within a GDP context, while inventories represent a small category, they are an important part of assessing the economic activities of a country. The fluctuations in inventory levels can indicate economic trends such as the demand for goods and the overall business climate. Accurately accounting for inventories is essential not only for individual businesses but also when measuring GDP using the expenditure or the national income approach.