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To Determine How Much Inventory a Company Should Buy, the Following

Question 101

Multiple Choice

To determine how much inventory a company should buy, the following formula should be used:


A) Cost of goods sold, plus ending inventory, less beginning inventory equals purchases.
B) Cost of goods sold, less ending inventory, less beginning inventory equals purchases.
C) Cost of goods sold, plus ending inventory, plus beginning inventory equals purchases.
D) None of the above are correct.

Correct Answer:

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