PDSnet Glossary

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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Name	synonyms = 1, variations = 2, abbreviations = 3

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Definition

The stock which is in a company's warehouse at the beginning of the accounting period - which should be the same as the closing stock of the previous period. The calculation of the company's cost of sales is: cost of sales = opening stock + purchases - closing stock. The method of valuing stock can have a significant impact on cost of sales and hence on profitability. Companies are required to disclose any changes to their method of valuing stock in the first note to their financial statements.

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