Which of the Following Formulas Represents Cost of Goods Sold

question 158

Multiple Choice

Which of the following formulas represents cost of goods sold for a merchandising business?

• A) Beginning inventory - ending inventory = cost of goods sold
• B) Purchases and freight in - ending inventory = cost of goods sold
• C) Ending inventory + purchases and freight in - beginning inventory = cost of goods sold
• D) Beginning inventory + purchases and freight in - ending inventory = cost of goods sold

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Definitions:

Indifference Curves

Graphical representations in economics showing different bundles of goods between which a consumer is indifferent, reflecting preferences of equal utility.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford to purchase with a given budget, at given prices.

Risk Averse

Describes individuals or entities that prefer to avoid risk, often opting for safer investments even with potentially lower returns.

Indifference Curve

A curve representing all combinations of goods or services among which a consumer is indifferent, showing different combinations that provide the same level of utility to the consumer.