# Cost of Goods: Definition & Calculation Video

Instructions:

question 1 of 3

### What's the best explanation of costs of goods?

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### 2. You are a small retailer who started with \$3,000 in inventory this month. You bought another \$2,500 worth of inventory during the month and ended up with \$1,000 left at the end of the month. You spent an additional \$1,200 in overhead expenses. What was the your costs of good sold?

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The cost of goods is an important calculation in business. This quiz/worksheet will help you assess your understanding of how it is calculated and let you put your skills to the test with practice problems.

## Quiz & Worksheet Goals

In these assessments you'll be tested on factors, definitions, and calculations of:

• Costs of goods
• Inventory

## Skills Practiced

This quiz and worksheet allows students to test the following skills:

• Problem solving - use acquired knowledge to solve practice problems involving the cost of goods
• Making connections - use understanding of the concept of the cost of goods in different situations
• Distinguishing differences - compare and contrast costs that are and aren't considered part of the cost of goods
• Defining key concepts - ensure that you can accurately describe the concept of the cost of goods

To learn more about the cost of goods, review the accompanying lesson Cost of Goods: Definition & Calculation. This lesson covers the following objectives:

• Define costs of goods
• Understand what constitutes the cost of goods in manufacturing, retail, and service industries
• Know the formula for calculating the costs of inventory over a certain period of time
• Know the formula for calculating the costs of goods when the goods are self-manufactured
• Know the formula for calculating the costs of service provided
Final Exam
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