Which comes last in the flow of costs?

Question

Quizplus · Accepted Answer

Cost of goods sold represents the cost of the raw materials, labor, and overhead used to manufacture a product that has been sold. It is the last cost to be incurred in the flow of costs, as it represents the final stage in the manufacturing process. Finished goods inventory comes before cost of goods sold, as it represents completed products that have not yet been sold. Work in process inventory comes before finished goods inventory, as it represents products that are still being manufactured. Raw materials inventory comes first in the flow of costs, as it represents the initial raw materials purchased for manufacturing.

Which Comes Last in the Flow of Costs