The need to calculate cost of sales is driven by which of the following accounting principles?
A) Accounting entity
B) Accounting period
C) Matching
D) Historic cost

Question

Quizplus · Accepted Answer

The matching principle in accounting dictates that expenses should be matched with the revenues they help to generate within the same period. The cost of sales is directly related to the revenue generated from selling goods, hence it is calculated and matched with sales revenue to accurately report profit.

The Need to Calculate Cost of Sales Is Driven by Which