Which one of the following statements describes the 'cost of goods'? Cost of goods sold is the total of:

Question

Quizplus · Accepted Answer

Cost of goods sold includes both direct and indirect production costs. Direct costs are those that can be directly attributed to the production of goods, such as raw materials and labor. Indirect costs, also known as overheads, are costs that are not directly tied to a specific product but are necessary for the production process, such as utilities and rent for the production facility.

Which One of the Following Statements Describes the 'Cost of Goods