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?

Question

Quizplus · Accepted Answer

A retail business calculates the cost of sales in their income statement by adding the stock of finished goods at the start and purchases during the period, then subtracting the stock of finished goods at the end. This method reflects the cost of goods that were actually sold during the period.

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