Cost of goods sold represents

Question

Quizplus · Accepted Answer

Cost of goods sold represents the expired costs (primarily the direct costs) of producing or acquiring the goods that were sold during a period. It is reported on the income statement as an expense. Options B and C are incorrect as they do not reflect the actual definition of cost of goods sold, and option D is incorrect as it implies that the cost of goods sold is reported on the balance sheet while it is actually reported on the income statement.

Cost of Goods Sold Represents