The cost of the inventory that a business has sold to customers is called:

Question

Quizplus · Accepted Answer

The cost of the inventory that a business has sold to customers is known as cost of goods sold (COGS). This is the direct cost of producing or acquiring the products that a company sells, including materials, labor, and overhead expenses. Therefore, option B is the correct choice. Options A, C, and D are not correct because inventory refers to the goods that a business keeps on hand for sale, purchases are the total amount of products a company has acquired during a specific period, and gross profit is the revenue that remains after deducting the cost of goods sold from the total sales.

The Cost of the Inventory That a Business Has Sold