Expected ending inventory volumes and costs need to be calculated to forecast:
A) Beginning inventory levels for the budget period
B) Cost of goods sold
C) Revenues
D) Overhead costs

Question

Quizplus · Accepted Answer

Expected ending inventory volumes and costs are primarily used to forecast the cost of goods sold (COGS). COGS is directly affected by inventory levels, as it represents the cost of the inventory that was sold during the period. Calculating expected ending inventory helps in estimating COGS by determining the value of inventory that remains unsold.

Expected Ending Inventory Volumes and Costs Need to Be Calculated