Which of the Following Replaces the Retailing Component "Purchases" in Computing

question 19

Multiple Choice

Which of the following replaces the retailing component "Purchases" in computing Cost of Goods Sold for a manufacturing company?

• A)direct material used
• B)cost of goods manufactured
• C)total prime cost
• D)cost of goods available for sale

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Definitions:

Cash Dividends

Distributions of a company's earnings to shareholders in the form of cash.

Selling and Administrative Expenses

Costs related to the day-to-day operations of a business, excluding manufacturing expenses.

Internal Rate of Growth

The maximum rate at which a firm can grow its sales and revenue without needing to increase external financing, relying solely on its own profits.

Assets

Resources owned by a company or individual that have economic value and can be used to meet debts, commitments, or legacies.