In financial statements,the number of units shown in cost of goods sold as compared to the number of the units actually produced:
A) is always higher.
B) is always lower.
C) is always the same.
D) can be either higher or lower.

Question

Quizplus · Accepted Answer

The number of units shown in cost of goods sold can be either higher or lower than the number of units actually produced, depending on the level of inventory at the beginning and end of the period. If there is beginning inventory, the number of units in cost of goods sold will be lower than the units produced, while if there is ending inventory, the number of units in cost of goods sold will be higher than the units produced.

In Financial Statements,the Number of Units Shown in Cost of Goods