[amp_mcq option1=”Amount of sales” option2=”Gross profit” option3=”Cost of goods sold” option4=”Net income” correct=”option3″]<\/p>\n
The correct answer is C. Cost of goods sold.<\/p>\n
Purchases + opening stock – closing stock = cost of goods sold.<\/p>\n
Cost of goods sold is the total cost of the goods that a company has sold during a period. It is calculated by adding the cost of goods purchased to the beginning inventory and then subtracting the ending inventory.<\/p>\n
The cost of goods purchased is the cost of the goods that a company has purchased during a period. It is calculated by multiplying the number of units purchased by the unit cost.<\/p>\n
The beginning inventory is the value of the goods that a company has on hand at the beginning of a period. It is calculated by multiplying the number of units on hand by the unit cost.<\/p>\n
The ending inventory is the value of the goods that a company has on hand at the end of a period. It is calculated by multiplying the number of units on hand by the unit cost.<\/p>\n
Cost of goods sold is an important measure of a company’s profitability. It is used to calculate the gross profit, which is the difference between the sales revenue and the cost of goods sold. The gross profit is then used to calculate the net income, which is the total profit that a company has earned during a period.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Amount of sales” option2=”Gross profit” option3=”Cost of goods sold” option4=”Net income” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-8850","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n