Gains and losses from the sale of property, plant, and equipment should be included in cost of goods sold as in reality they reflect the cost of producing goods for sale.

Question

Quizplus · Accepted Answer

Gains and losses from the sale of property, plant, and equipment should not be included in cost of goods sold as they are not directly related to the production of goods for sale. They should be recorded separately on the income statement as other revenues or expenses.

Gains and Losses from the Sale of Property, Plant, and Equipment