Cost of Goods Sold is an operating expense on the income statement.

Name: Cost of Goods Sold is an operating expense on the income statement.
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Cost of Goods Sold (COGS) is not an operating expense; it is a direct cost associated with the production of goods sold by a company and is subtracted from revenue to calculate gross profit. Operating expenses are separate and include costs like rent, utilities, and salaries.

Cost of Goods Sold Is an Operating Expense on the Income