Cost of goods sold is often the largest expense on a merchandising company income statement.

Question

Quizplus · Accepted Answer

Cost of goods sold represents the direct costs associated with producing or purchasing the goods that a company sells. As such, it tends to be the largest expense for a merchandising company, especially those that deal in physical goods. Other expenses like salaries, rent, marketing, and depreciation can also be significant, but they are generally smaller than COGS.

Cost of Goods Sold Is Often the Largest Expense on a Merchandising