The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

Question

Quizplus · Accepted Answer

The cost of goods sold represents the direct costs of producing the goods that were sold during a particular period. These direct costs include the cost of direct materials, direct labor, and factory overhead. Therefore, the cost of goods sold is the sum of all the direct costs related to the creation of the goods sold during a particular period.

The Cost of Goods Sold Is the Cost of Direct