The amount for beginning inventory is needed when calculating Cost of Goods Sold.

Name: The amount for beginning inventory is needed when calculating Cost of Goods Sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Beginning inventory is the value of inventory at the beginning of a period, and is necessary to calculate Cost of Goods Sold (COGS) using the formula COGS = Beginning Inventory + Purchases - Ending Inventory. Therefore, the amount for beginning inventory is needed in order to calculate COGS.

The Amount for Beginning Inventory Is Needed When Calculating Cost