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 is the cost directly associated with producing or purchasing the goods that were sold during the period. Therefore, it is the cost of the goods sold during the period. Options A and B both include goods that may not have been sold yet, while option D is not correct as one of the other options is correct.

Cost of Sales Is a Major Expense for a Retailer