Inventory balance is calculated as which of the following?

• A. Quantity x inventory value
• B. Cost x quantity
• C. Unit cost x quantity
• D. Total cost of goods available

Answer: (A)

The value of the inventory on hand is found by multiplying how many units you have by the cost of each unit. In other words, total inventory value = quantity on hand × cost per unit (unit cost). The option that uses quantity × inventory value expresses this per-unit concept clearly, since “inventory value” here is the value of a single unit.

The other phrasing can be vague or refers to a broader total measure. “Cost × quantity” would be correct only if “cost” is specifically the unit cost, which isn’t always explicit. “Unit cost × quantity” is essentially the same idea but is a more precise way to state it. “Total cost of goods available” relates to the overall cost of goods for the period (beginning inventory plus purchases), not the balance of inventory on hand.