Which of the Following Lists of Items Is Used to Compute

question 107

Multiple Choice

Which of the following lists of items is used to compute the cost of goods available for sale?

• A) Delivered cost of purchases and beginning inventory
• B) Sales, beginning inventory, and ending inventory
• C) Net sales, beginning inventory, and ending inventory
• D) Gross profit, beginning inventory, and ending inventory
• E) Beginning inventory and ending inventory

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Definitions:

Direct Expenses

Costs that can be directly traced to a product, service, or activity without any need for allocation.

Profit Center

A profit center is a division or branch within a company that is responsible for generating its own revenue and profit, allowing for performance measurement independently.

Uncontrollable Costs

Uncontrollable costs are expenses that cannot be directly managed or influenced by actions of the business or its managers, often due to external factors.

Investment Center

A division or unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated on its profitability.