Which of the following is characteristic of cost of goods sold?
A)Cost of goods sold is the total product cost for the units sold during a period.
B)Cost of goods sold is the total product cost on the balance sheet.
C)Cost of goods sold is a cost that will be more than the revenue.
D)Cost of goods sold does not include the direct materials cost of the product.

Question

Quizplus · Accepted Answer

Cost of goods sold represents the total cost of the product sold during a period. It includes the cost of direct materials, direct labor, and manufacturing overhead incurred in the production process. Cost of goods sold is reported on the income statement and is deducted from sales revenue to determine the gross profit.

Which of the Following Is Characteristic of Cost of Goods