What type of business would calculate cost of sales in the income statement as stock of finished goods at start + purchases - stock of finished goods at end?

Name: What type of business would calculate cost of sales in the income statement as stock of finished goods at start + purchases - stock of finished goods at end?
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Question

Quizplus · Accepted Answer

A clothing shop would calculate cost of sales using the formula provided, as it involves inventory management of finished goods, which is typical for retail businesses.

What Type of Business Would Calculate Cost of Sales in the Income