Which of the following is correct about cost of goods sold?
Answer Details
The correct option about the cost of goods sold is: "opening stock + purchases - closing stock". This is because cost of goods sold is the total cost incurred in acquiring or producing the goods that were sold during a given accounting period. It includes the cost of the opening stock at the beginning of the period, the cost of any purchases made during the period, and the cost of the closing stock at the end of the period. By subtracting the value of the closing stock from the total of the opening stock and purchases, we get the cost of goods sold.