I find some source definite it as Purchase/payable, sometimes it shown as COGS/payable, in the exam, which we should definitely use?
but if the question give you both the COGS and purchase data, which one should be used to calculate the payable turnover, Qbank use the COGS than purchase though they provides the purchase data also…
I would go for COGS. Stalla also goes for COGS when given both.
thanks for confirmation!
Technically it’s purchases/Average Trade payables see page 122 of volume 4 However COGS is a good approximation of purchases if inventory stayed the same Beg Inventory+Purchases=Goods Available for sale (GAFS) GAFS - Ending inventory=COGS So if Beg Inv.=Ending Inv. Purchases=COGS
Thanks for that, CFA=NOLIFE - I was just looking up the how to determine purchases