Select the balance sheet account(s)that would be affected by a policy choice at the same time as the cost of goods sold income statement account.

Question

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The cost of goods sold (COGS) is directly related to the balance of inventory, which means that any policy choice related to COGS will affect the inventory account as well. For instance, reducing the production of goods could lead to a decrease in COGS and therefore an increase in the inventory balance, and vice versa. The other options (A, C, D) are not directly related to COGS and may be affected by other policy choices.

Select the Balance Sheet Account(s)that Would Be Affected by a Policy