Cost of sales is usually the largest expense for manufacturing or merchandising companies.

Question

Quizplus · Accepted Answer

Cost of sales, also known as cost of goods sold, includes all the direct expenses that are incurred to produce or acquire the goods sold by a company, such as materials, labor, and overhead costs. This cost is usually the largest expense for manufacturing or merchandising companies, as it directly relates to the revenue generated from sales.

Cost of Sales Is Usually the Largest Expense for Manufacturing