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 higher.
B)is lower.
C)is 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 produced, depending on inventory changes. If inventory decreases, COGS units are higher; if inventory increases, COGS units are lower.

In Financial Statements, the Number of Units Shown in Cost