Cost of goods sold appears on both a multi-step income statement and a single-step income statement.

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Cost of goods sold is a key expense item in both multi-step and single-step income statements. In a multi-step income statement, it typically appears as a separate line item below the gross profit section, while in a single-step income statement, it is included as part of the calculation of total expenses.

Cost of Goods Sold Appears on Both a Multi-Step Income