Which of the following represents the product costs on the income statement?
A)Cost of goods sold
B)Sales revenue
C)Sales commissions
D)None of these

Question

Quizplus · Accepted Answer

Cost of goods sold represents the direct costs associated with producing or purchasing the goods that were sold during the accounting period, and is therefore a product cost. Sales revenue and sales commissions are not product costs, but rather revenues and expenses associated with the selling of those products. "None of these" is not a correct choice since cost of goods sold is specifically listed as an option.

Which of the Following Represents the Product Costs on the Income