The cost of goods sold will often differ from the cost of goods manufactured because of changes in the quantity of finished goods.

Question

Quizplus · Accepted Answer

The cost of goods sold includes only the cost of finished goods that have been sold to customers, while the cost of goods manufactured includes the cost of all finished goods produced during a given period, regardless of whether they were sold or not. Therefore, if there are changes in the quantity of finished goods produced but not sold, the cost of goods manufactured and the cost of goods sold will differ.

The Cost of Goods Sold Will Often Differ from the Cost