To Which Account Is the Cost of Inventory Transferred When

question 44

Multiple Choice

To which account is the cost of inventory transferred when a product is sold?

• A) Sales
• B) Operating expenses
• C) Inventory sold
• D) Cost of goods sold

---

Definitions:

Inputs

Resources used in the production process, including labor, capital, materials, and energy.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Total Revenue

The overall income generated by a business from its sale of goods or services, calculated as the price per unit times the number of units sold.

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in price.