Which of the following replaces the retailing component "Purchases" in computing Cost of Goods Sold for a manufacturing company?
A)direct material used
B)cost of goods manufactured
C)total prime cost
D)cost of goods available for sale

Question

Quizplus · Accepted Answer

Cost of Goods Manufactured replaces the retailing component "Purchases" in computing Cost of Goods Sold for a manufacturing company, as it represents the total cost of producing goods that are finished and ready for sale.

Which of the Following Replaces the Retailing Component "Purchases" in Computing