Under a periodic inventory system, cost of goods sold is calculated based on the cost of
available-for-sale units less the cost of ending inventory as identified through a physical inventory.

Question

Quizplus · Accepted Answer

This statement is correct. Under periodic inventory system, cost of goods sold is calculated by taking the cost of available-for-sale units during the period and deducting the cost of ending inventory as determined through a physical count at the end of the period.

Under a Periodic Inventory System, Cost of Goods Sold Is