Which of the Following Formulae Determine Cost of Goods Sold

question 43

Multiple Choice

Which of the following formulae determine cost of goods sold in a retail sector company?

• A)Beginning inventory - Ending inventory - Purchases = Cost of goods sold
• B)Beginning inventory + Purchases + Ending inventory = Cost of goods sold
• C)Beginning inventory + Purchases - Ending inventory = Costs of goods sold
• D)Beginning inventory - Purchases + Ending inventory = Cost of goods sold

---

Definitions:

Perfect Competition

Perfect competition describes a market structure where many firms sell identical products, no single buyer or seller can influence the market price, and there is free entry and exit of firms.

Firm Profits

The financial gains a company makes after deducting all its expenses.

Marginal Cost Curve

A graph that shows the change in the cost of producing one more unit of a good.

Profit-Maximizing

The process or strategy of adjusting production and sale to achieve the highest possible profit.