A company can use the cost-of-goods-sold model to determine how much inventory to purchase.

Question

Quizplus · Accepted Answer

The cost-of-goods-sold (COGS) model takes into account the cost of materials, labor, and overhead needed to produce the goods. By using this model, a company can determine the cost of each unit they produce and can make informed decisions about how much inventory to purchase based on demand and expected sales. Therefore, A is the correct answer.

A Company Can Use the Cost-Of-Goods-Sold Model to Determine How