Inventory becomes part of the cost of goods sold when a company
A)pays for the inventory.
B)purchases the inventory.
C)sells the inventory.
D)receives payment from the customer.

Question

Quizplus · Accepted Answer

Inventory becomes part of the cost of goods sold when a company sells the inventory. This is because the cost of goods sold (COGS) represents the direct costs attributable to the production of the goods sold by a company.

Inventory Becomes Part of the Cost of Goods Sold When