Question

What is equivalent to a manufacturing firm's cost of goods manufactured (COGM) for a merchandising firm?

A. Cost of goods sold (COGS)
B. Cost of goods purchased (COGP)
C. Cost of goods available for sale (COGAS)
D. Beginning merchandise inventory (BMI)
E. Ending merchandise inventory (EMI)

Answer 1

In a merchandising firm, the equivalent to a manufacturing firm's cost of goods manufactured (COGM) is the cost of goods sold (COGS).

Step-by-step explanation:

In a manufacturing firm, the Cost of Goods Manufactured (COGM) refers to the total cost of producing the goods that are ready for sale. In a merchandising firm, the equivalent concept is the Cost of Goods Sold (COGS), which is the cost of acquiring or purchasing the goods that are sold to customers. Therefore, the answer to your question is A. Cost of goods sold (COGS).