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

Question

A. Retained earnings
B. Cost of goods sold
C. Interest expenses
D. Inventory

Answer 1

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.