If a Company Has Zero Beginning Inventory and Zero Ending

question 46

Multiple Choice

If a company has zero beginning inventory and zero ending inventory which of the following is true?

• A)Cost of goods sold will equal cost of goods manufactured.
• B)Cost of goods sold will be zero.
• C)Cost of goods manufactured will be zero.
• D)Inventory levels will fluctuate each period.

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Definitions:

Derived Demand

The demand for industrial products and services that is driven by, or derived from, the demand for consumer products and services.

Organizational Buying Criteria

Factors that businesses consider when making purchasing decisions, including price, quality, service, and supplier relationships.

Forestry Management

The practice of managing and using forests to meet specific environmental, economic, social, and cultural objectives.

Sustainable Practices

Business or organizational methods that aim to minimize negative impacts on the environment, society, and economy, focusing on long-term preservation and ethical responsibility.