Merchandising companies,like service companies,do not use a Cost of Goods Sold account.

Question

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Merchandising companies do use a Cost of Goods Sold account to track the cost of the products they sell. This cost includes the cost of purchasing or producing the products, as well as any costs associated with getting the products ready for sale (such as packaging, shipping, and handling). The Cost of Goods Sold is subtracted from the company's revenue to calculate the gross profit.

Merchandising Companies,like Service Companies,do Not Use a Cost of Goods