If the Cost of Goods Sold Is Greater Than the Cost

question 101

Multiple Choice

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

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

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Definitions:

Recession

A phase of short-term economic downturn characterized by decreased trading and industrial output, generally recognized by a drop in Gross Domestic Product across two consecutive quarters.

National Debt

The aggregate financial obligations incurred by a government of a country through borrowing.

Tax Revenue

The income gained by the government through taxation, which is then used to fund public services and governmental functions.

Budget

An estimate of income and expenditure for a set period of time.