Cost of goods sold is:
A)Another term for merchandise sales.
B)The cost of merchandise sold to customers.
C)Another term for revenue.
D)Also called gross margin.
E)A term only used by service firms.

Question

Quizplus · Accepted Answer

Cost of goods sold refers to the cost of the inventory or merchandise that a company sells to customers during a given period. It is not the same as revenue or gross margin, and is usually only used by companies that sell physical products rather than services.

Cost of Goods Sold Is