Cost of sales is a major expense for a retailer. Cost of sales is:
A)the cost of the goods purchased during the period.
B)the cost of the goods available for sale during the period.
C)the cost of the goods sold during the period.
D)none of the above.

Question

Quizplus · Accepted Answer

Cost of sales refers to the cost of the goods sold during the period. It includes the cost of the inventory sold, such as the purchase cost, freight, and any other costs directly related to the purchase of the product. Option A and B are not accurate because they do not consider the cost of the goods sold during the period. Option D is incorrect because one of the other options is the correct answer.

Cost of Sales Is a Major Expense for a Retailer