The largest expense category on the income statement of most merchandising companies is:

Question

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Cost of goods sold represents the cost of the products that a company sells during a given period. As such, it is typically the largest expense category for merchandising companies, as their main source of revenue comes from the sale of goods. Other expenses, selling expenses, and administrative expenses are also important categories on the income statement, but they are typically smaller in comparison to cost of goods sold.

The Largest Expense Category on the Income Statement of Most