The Cost of Goods Available for Sale Is Equal to The

question 11

Multiple Choice

The cost of goods available for sale is equal to the:

• A)cost of goods sold minus the ending inventory.
• B)sales revenue minus the cost of goods sold.
• C)cost of goods sold plus the ending inventory.
• D)ending inventory plus the sales revenues.

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Definitions:

Units Produced

Refers to the total quantity of goods manufactured by a business during a specific period.

Fixed Cost

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or loan payments.

Cost Behavior

The manner in which a cost changes in relation to its activity base (driver).

Activity Changes

Variations or alterations in the level of operations, processes, or actions within an organization that can impact performance and outcomes.