What Is the Correct Equation to Calculate the Cost of Sales

question 62

Multiple Choice

What is the correct equation to calculate the cost of sales in a periodic inventory system?

• A)Beginning inventory + Purchases - Ending inventory
• B)Beginning inventory + Purchases + Ending inventory
• C)Beginning inventory - Purchases + Ending inventory
• D)Beginning inventory - Purchases - Ending inventory

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Definitions:

Compensation Systems

The policies and procedures that determine how employees are paid and rewarded for their work.

Capital Budgets

Expenditure planning for long-term investments in an organization, aimed at future benefits.

Operating Budgets

Detailed financial plans that outline expected income and expenditures related to the daily operations of an organization for a specific period.

Maslow's Theory

An explanation of motivation that suggests individuals are propelled to satisfy a progression of needs starting from the most basic physiological necessities up to higher levels of psychological fulfillment.