Dayton Industries manufactures the motors used in heating and air conditioning systems. It had sales of $300,000 during the last quarter. Its gross profit was $120,000. On an income statement, an accountant would classify the remaining $180,000 as which of the following?

Question

Quizplus · Accepted Answer

The remaining $180,000 is classified as the cost of goods sold (COGS), which represents the direct costs attributable to the production of the goods sold by a company. This figure is subtracted from sales to find the gross profit.

Dayton Industries Manufactures the Motors Used in Heating and Air