Cost of goods sold (COGS) includes all costs directly related to the production or purchase of goods sold by a company. This includes costs for products, materials, and labor. In a retail firm, it includes the cost paid to suppliers for inventory, and in a service firm, it includes labor costs.

Solved

Cost of Goods Sold

Question 82

Multiple Choice

Cost of goods sold

A) includes any costs for products, material, or labor that are directly related to the sale.
B) in a retail firm will be the cost paid to suppliers for inventory.
C) in a service firm will include labor costs.
D) all of the above.

Correct Answer: