If Finished Goods Inventory Has Increased During the Period, Which

question 42

Multiple Choice

If finished goods inventory has increased during the period, which of the following is always true?

• A)Cost of goods sold is less than cost of goods manufactured.
• B)Cost of goods sold is more than cost of goods manufactured.
• C)Cost of goods manufactured is more than total manufacturing costs.
• D)Cost of goods manufactured is less than total manufacturing costs.

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Definitions:

Firms

Organizations that use various inputs to produce goods or services for sale to consumers, other businesses, or the government.

Workers

Individuals engaged in a particular task or activity for wages or salary.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

Equilibrium Price

The cost factor at which the supply side and demand side of goods reach an equilibrium in the market.