The cost of the inventory that the business has sold to customers is called:

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) represents the cost of goods or products that a company has sold to customers, including the cost of materials, labor, and overhead expenses directly related to the production of goods. It is calculated by subtracting the cost of ending inventory from the sum of beginning inventory and purchases during the period. Therefore, the cost of inventory that a business has sold to customers is recognized as the Cost of Goods Sold.

The Cost of the Inventory That the Business Has Sold