The direct costs of producing a product or providing a service is called:
A)gross profit
B)gross profit margin
C)net profit margin
D)cost of goods sold

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) represents the direct costs attributable to the production of the goods sold by a company. It includes the cost of materials and labor directly involved in producing the product or providing the service. COGS is deducted from revenue to calculate gross profit.

The Direct Costs of Producing a Product or Providing a Service