The cost of goods purchased line on the income statement of a retailer is the equivalent to which line on a manufacturer's income statement?
A) Cost of raw materials purchased
B) Cost of goods sold
C) Cost of goods available for sale
D) Cost of goods manufactured

Question

Quizplus · Accepted Answer

The cost of goods purchased for a retailer is equivalent to the cost of goods manufactured for a manufacturer, as both represent the total cost of products ready for sale.

The Cost of Goods Purchased Line on the Income Statement