Which of the Following Formulas Represents Cost of Goods Sold

question 79

Multiple Choice

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

• A) Beginning Merchandise Inventory - Ending Merchandise Inventory = Cost of Goods Sold
• B) Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold
• C) Ending Merchandise Inventory + Purchases and Freight In - Beginning Merchandise Inventory = Cost of Goods Sold
• D) Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold

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Definitions:

Supply

Refers to the total amount of goods or services that are available for purchase at any given price level.

Government Subsidy

Financial assistance given by the government to individuals, businesses, or institutions to support or encourage certain economic activities.

Supply

The total amount of a good or service available for purchase at any given price level, within a specified period.

Law of Demand

A fundamental economic principle stating that as the price of a product decreases, demand for it usually increases, and vice versa.