Cost of goods sold is equal to cost of goods available for sale:
A)Plus cost of ending inventory
B)Minus cost of ending inventory
C)Divided by cost of ending inventory
D)Multiplied by cost of ending inventory
E)None of these

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) is the cost of the products that a company has sold during a specific period. It is calculated as the cost of goods available for sale (beginning inventory + purchases) minus the cost of ending inventory. Therefore, choice B is correct as it subtracts the cost of ending inventory from the cost of goods available for sale to arrive at COGS.

Cost of Goods Sold Is Equal to Cost of Goods