DQW1-1 - How do you think your current or former employer...

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What items make up cost of goods sold? The items that make up cost of goods sold are the items purchased to produce the product that is sold. How does beginning and ending inventory affect cost of goods sold? The beginning and ending inventory affect cost of goods sold by increasing cost of goods sold or decreasing cost of goods sold. Beginning inventory increases cost of goods sold and ending inventory decreases cost of goods sold. If a company would add their cost of goods sold and add it to the beginning inventory and then take that figure and subtract their ending inventory that would give them their real cost of goods sold.
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Unformatted text preview: How do you think your current or former employer organization calculates the cost of goods sold? This question is a little hard for me because I work for a shipping company and hopefully I can answer this in a way everyone will understand. First of all FedExs goods is its services that we provide. To see how much we sold we count how many packages went through our system for that day and count each services that was used for that day and multiply that by how much the packages weigh and where it is going. Some places are more expensive than others. Hope this helps....
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This note was uploaded on 03/28/2011 for the course ACCT 349 taught by Professor Goyal during the Spring '09 term at University of Phoenix.

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