How does an increase in beginning inventory affect COGS?

ابتدائی انوینٹری میں اضافہ سی او جی ایس کو کیسے متاثر کرتا ہے؟

Decreases COGS

Increases COGS

Has no effect on COGS

Doubles COGS

An increase in beginning inventory decreases COGS.

As more inventory is already on hand and less needs to be purchased or produced.

This reduces the cost of goods sold, as the cost of the existing inventory is not included in COGS.