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    Question

    Which of the following formulae is correct for

    calculation of Cost of Goods Sold?
    A Opening Stock + Purchases + Direct Expenses – Closing Stock Correct Answer Incorrect Answer
    B Sales – Net Profit Correct Answer Incorrect Answer
    C Opening Stock + Purchases + Direct Expenses + Closing Stock Correct Answer Incorrect Answer
    D Purchases + Direct Expenses Correct Answer Incorrect Answer

    Solution

    The correct formula to calculate COGS is Opening Stock + Purchases + Direct Expenses – Closing Stock.

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