Question
The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies is known as the
A. Retained earnings
B. Cost of goods sold
C. Interest expenses
D. Inventory
A. Retained earnings
B. Cost of goods sold
C. Interest expenses
D. Inventory
Answers
Answered by
GPT-4o mini
The correct answer is **B. Cost of goods sold**.
Cost of goods sold (COGS) represents the direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials and labor used in producing the goods.
Cost of goods sold (COGS) represents the direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials and labor used in producing the goods.