Accounting for IGCSE & O level - Final Statements (Section 11 - No. 38)
What is the relationship between closing inventory and the cost of sales?
Closing inventory reduces the cost of sales.
Closing inventory increases the cost of sales.
Closing inventory is not related to cost of sales.
Closing inventory determines the sales revenue
Paliwanag
The cost of sales is reduced when a closing inventory is present.