Cost of Merchandise Sold is often the largest expense on a merchandising company income statement.

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Cost of Merchandise Sold (or Cost of Goods Sold) includes the cost of inventory that has been sold during a specific period and is a direct expense associated with the revenue generated from sales. This expense is usually the largest expense on a merchandising company's income statement, as it directly impacts the gross profit margin.

Cost of Merchandise Sold Is Often the Largest Expense on a Merchandising