The largest expense on a retailer's income statement is typically:
A) Salaries and wages.
B) Cost of goods sold.
C) Income tax expense.
D) Depreciation expense.

Question

Quizplus · Accepted Answer

The cost of goods sold, or COGS, is the direct cost of the products or goods sold by a retailer. This includes the cost of the products themselves, as well as any direct labor or materials required to produce them. COGS typically makes up the largest expense on a retailer's income statement.

The Largest Expense on a Retailer's Income Statement Is Typically