Which Statement Best Depicts the Inventory Cost Flow Equation

question 13

Multiple Choice

Which statement best depicts the inventory cost flow equation?

• A)Cost of goods available for sale = Beginning inventory + Ending inventory.
• B)Beginning inventory + Purchases = Cost of sales + Ending inventory.
• C)Sales - Cost of goods sold = Gross margin.
• D)Gross margin - Operating expenses = Operating income.

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Definitions:

Shortfall

A deficiency or gap where something falls short of expectations or required levels.

Workers

Individuals engaged in a physical or mental activity to achieve a purpose or result, often in exchange for payment.

Visible Minorities

Individuals from racial or ethnic groups that are not in the majority within a specific community or country, often marked by visible differences.

Labour Shortages

A situation in which there are insufficient qualified candidates available to fill the positions needed by employers in the labor market.