Question

If there is no opening or closing stock, the total of purchases and direct expenses is taken as _______.

• A. Cost of goods manufactured
• B. Total sales
• C. Cost of goods sold
• D. Purchases

Answer 1

Answer: (C)

Cost of goods sold

If there is no opening or closing stock, the total purchases and direct expenses is taken as Cost of goods sold.
Op.Stock + Purchases + Direct Expenses - Cl. Stock = Cost of Goods Sold
Rs. 0 + Purchases +Direct Expenses - Rs. 0 = Cost of Goods Sold
Purchases + Direct Expenses = Cost of Goods Sold.