The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is the cost associated with producing or acquiring the goods that are sold in a company's operations. This includes all the costs of buying and holding the inventory, such as direct materials, labor, and overhead expenses. COGS is subtracted from revenue to calculate the gross profit margin.

The Cost of Goods Sold Includes All the Costs of Buying