The cost of goods sold represents the total cost,including distribution,of the goods sold during the year.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is the sum of all the direct costs associated with producing and selling goods, including the cost of materials, labor, and overhead. This cost is deducted from the revenue generated by the sale of goods to determine gross profit. COGS does not include distribution costs, which are categorized as selling, general, and administrative expenses (SG&A).

The Cost of Goods Sold Represents the Total Cost,including Distribution,of