Qualls Department Store counted some of its inventory items twice. As a result, its operating expenses will be

Question

Quizplus · Accepted Answer

Operating expenses are costs associated with the day-to-day functions of a business outside of the cost of goods sold (COGS). Since inventory counts primarily affect the calculation of COGS and not the operating expenses directly, counting inventory items twice would not impact the operating expenses.

Qualls Department Store Counted Some of Its Inventory Items Twice