Which of the following is calculated last before operating income can be determined for a manufacturer?
A) Cost of goods available for sale
B) Cost of goods manufactured
C) Cost of goods sold
D) Cost of direct materials

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) is calculated last before determining operating income for a manufacturer. This is because COGS is derived after calculating the cost of goods manufactured and the cost of goods available for sale, and it directly affects the gross margin from which operating income is calculated.

Which of the Following Is Calculated Last Before Operating Income