Which of the Following Formulas Determine Cost of Goods Sold

question 115

Multiple Choice

Which of the following formulas determine cost of goods sold in a manufacturing entity?

• A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold
• B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold
• C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold
• D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

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Definitions:

Range

The difference between the highest and lowest values in a data set, used as a measure of statistical dispersion.

Natural Causes

Factors that affect events or conditions based on processes inherent to the natural world, as opposed to human-made influences.

Assignable Causes

Factors identified as reasons for variation in a process, which can be isolated and where corrective action can be applied.

Process Capability Ratio

A statistical measure that evaluates the ability of a production process to produce output within specified limits.