Cost of goods sold represents an outflow of a resource, inventory, which is caused by the sale of products.

Name: Cost of goods sold represents an outflow of a resource, inventory, which is caused by the sale of products.
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Question

Quizplus · Accepted Answer

Cost of goods sold is the expense incurred by a company for the direct costs associated with producing and selling a product, which includes the cost of inventory sold during that period. Therefore, it represents an outflow of a resource, inventory, caused by the sale of products.

Cost of Goods Sold Represents an Outflow of a Resource