For a Manufacturer, If Cost of Goods Manufactured Is $946

question 38

Multiple Choice

For a manufacturer, if cost of goods manufactured is $946 000, stock of finished goods at start is $83 000 and stock of finished goods at end is $62 000, calculate the cost of sales.

• A) $863 000
• B) $925 000
• C) $967 000
• D) Cannot be calculated with the information available

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Definitions:

Operating Income

Operating income is the profit realized from a business's core operations, excluding deductions of interest and taxes.

Variable Cost

Costs that change in proportion with the level of output or production activity.

Fixed Costs

Overheads such as rent, salaries, and insurance that do not fluctuate with the level of goods produced or sold.

Variable Costs

Charges that vary in relation to the volume of output or services provided by a firm.