If the Cost of Goods Sold Is Greater Than the Cost

question 89

Multiple Choice

If the cost of goods sold is greater than the cost of goods manufactured, then:

• A)total manufacturing costs must be greater than cost of goods manufactured.
• B)work in process inventory has decreased during the period.
• C)finished goods inventory has decreased during the period.
• D)finished goods inventory has increased during the period.

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Definitions:

Total Cost

The sum of all costs associated with the production of goods or services, including fixed and variable costs.

Extraction Costs

Expenses associated with the removal of natural resources from the earth, such as mining or drilling.

User Costs

The costs incurred by using a product or service, including purchase price, maintenance, and operation expenses.

Level

A stage, degree, or magnitude in a hierarchical system, often used to describe intensity, development, or achievement.