To Which Account Is the Cost of Inventory Transferred When

question 76

Multiple Choice

To which account is the cost of inventory transferred when a product is sold?

• A) Sales
• B) Freight expense
• C) Gross margin
• D) Cost of goods sold

---

Definitions:

Contractionary Monetary Policy

A form of monetary policy that aims to reduce the rate of monetary expansion to tackle inflation, often by increasing interest rates.

Aggregate Demand

All-encompassing demand for goods and services within an economic framework, fixed at a particular price point and time frame.

Interest Rates

represent the cost of borrowing money or the return on savings, playing a crucial role in influencing economic activity and financial decisions.

Planned Investment

The expenditure by businesses on capital goods that are intended to increase their productive capacity in the future.