Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 
PDA

eddie11
May 11, 2007, 12:12 PM
Is inventory cost the same as Cost of good sold? I believe it is but would be grateful for comfirmation.
bunnyKutty
May 12, 2007, 02:35 AM
No. Inventory cost is the cost of raw material consumed during a period. Inventory cost = Begining raw material + purchases of raw material - ending raw material. Cost of goods sold = Begining Raw material +Purchases of raw material + direct cost incurred - ending raw material.
The difference between the two is direct cost incurred or conversion cost incurred.