Question

The Expense Account selected for inventory parts would normally have the account type ____________.

a. Revenue
b. Cost of Goods Sold
c. Income
d. Expense

Answer 1

b. Cost of Goods Sold

Step-by-step explanation:

An inventory turnover can be defined as a measure of the amount of times an inventory used or sold by an organization at a specific period of time. The inventory turnover is calculated by dividing cost of goods sold by average inventory.

The Expense Account selected for inventory parts would normally have the account type Cost of Goods Sold.