Which comes last in the flow of costs?

Question

Quizplus · Accepted Answer

Cost of goods sold comes last in the flow of costs as it represents the cost of the goods that have been sold by the company. Before the goods are sold, they are first produced and stored in either raw materials inventory, work in process inventory, or finished goods inventory, depending on their stage of production. Once the goods are sold, their cost is transferred from the inventory accounts to the cost of goods sold account, which is reported on the income statement.

Which Comes Last in the Flow of Costs