Which of the following would be included in the Cost of Goods Sold account on a merchandising company's income statement?

Question

Quizplus · Accepted Answer

The Cost of Goods Sold account includes the cost of merchandise purchased from suppliers, which includes shipping costs from the manufacturer to the merchandiser.

Answer: D
 The Cost of Goods Sold account also includes any sales taxes paid on the purchase of merchandise, as these are direct costs associated with acquiring the goods that are being sold.

Sales commissions and advertising costs are not included in the Cost of Goods Sold account, as they are indirect costs associated with promoting and selling the merchandise, rather than direct costs associated with acquiring the goods themselves.

Which of the Following Would Be Included in the Cost