When does cost of goods sold equal cost of goods manufactured?
A)when finished goods inventories remain constant
B)when work-in-process inventories remain constant
C)when you add beginning work-in-process inventory minus ending work-in-process inventory
D)when materials inventories remain constant

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) equals Cost of Goods Manufactured (COGM) when the inventory of finished goods remains constant. This is because any changes in finished goods inventory would either increase or decrease COGS, making it different from COGM.

When Does Cost of Goods Sold Equal Cost of Goods