Which Comes First in the Flow of Costs

question 313

Multiple Choice

Which comes first in the flow of costs?

• A) Cost of goods sold
• B) Finished goods inventory
• C) Raw materials inventory
• D) Work in process inventory

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Definitions:

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn diminishes its price.

Common Stock

A form of corporate equity ownership, a type of security that signifies ownership in a corporation and represents a claim on part of its profits.

Market Price

The current price at which a good or service can be purchased or sold in a competitive marketplace.

Stock Split

A stock split is a corporate action that increases the number of a company's outstanding shares by issuing more shares to current shareholders, which usually results in a decrease in the individual share price.