Direct costs of producing a product or providing a service is called
A) gross profit
B) gross profit margin
C) net profit
D) net profit margin
E) cost of goods sold

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor directly used to create the product.

Direct Costs of Producing a Product or Providing a Service