All of the Following Are Included in the Computation of Cost

question 54

Multiple Choice

All of the following are included in the computation of cost of goods sold except

• A)freight-out
• B)purchase returns and allowances
• C)beginning finished goods inventory
• D)freight-in

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Definitions:

Cutting and Sewing

The process involved in the making of garments, which includes the cutting of fabric according to patterns and sewing them together to create clothing.

Activity-based Costing

A method of accounting that assigns costs to specific activities based on their use of resources, providing more accurate product costing.

Factory Overhead

Indirect costs associated with manufacturing, such as maintenance, utilities, and salaries, not directly tied to production output.

Selling Prices

The cost at which a service or product is made available to purchasers.