When Inventory Is Sold, Where Are the Related Costs Transferred

question 65

Multiple Choice

When inventory is sold, where are the related costs transferred to?

• A)Work in Process
• B)Cost of Goods Sold
• C)Finished Goods
• D)Manufacturing Overhead

---

Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.