Gains and losses from the sale of plant, property and equipment should be included in cost of goods sold as in reality they reflect the cost of producing goods for sale.

Question

Quizplus · Accepted Answer

Gains and losses from the sale of plant, property and equipment should not be included in cost of goods sold as they are non-operating transactions and not directly related to the production of goods for sale. They should be reported separately as other income or expense on the income statement.

Gains and Losses from the Sale of Plant, Property and Equipment