Inventory becomes part of 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.

Name: Inventory becomes part of 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.
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Question

Quizplus · Accepted Answer

Inventory becomes part of the cost of goods sold when it is sold, as this is when the cost is recognized as an expense in the income statement.

Inventory Becomes Part of Cost of Goods Sold When a Company