In manufacturing businesses, forecasting expenditures is a bit more complex because ____ must be derived first.
A)salaries
B)inventory expenses
C)factory overhead
D)cost of goods sold
E)in-process flow

Question

In manufacturing businesses, forecasting expenditures is a bit more complex because ____ must be derived first. ​
A)salaries
B)inventory expenses
C)factory overhead
D)cost of goods sold
E)in-process flow ​

Quizplus · Accepted Answer

In manufacturing businesses, forecasting expenditures requires first determining the cost of goods sold (COGS). COGS is essential for understanding the direct costs tied to the production of the goods sold by a company, including materials and labor, making it a critical first step in forecasting overall expenditures.

In Manufacturing Businesses, Forecasting Expenditures Is a Bit More Complex