A calculation of beginning merchandise inventory plus net purchases of merchandise, then subtracted by ending merchandise inventory. The outcome of the calculation is the cost of purchasing raw materials and creating goods to sell clients. In the accounting field, this refers to costs of production.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser