With regards to the above, cost of goods sold refers to the cost of a product either to a retailer or a producer. Higher cost of goods sold means that little profit is made by a company and vice versa. It is known to be a business expense, hence expenses are usually debited thus reduces equity, while a credited inventory decreases assets because as money is taken out of the business, it's assets decreases.
It therefore means that a debited cost of goods sold decreases equity, while a credited inventory decreases asset.
Since smoking is very popular. (1 billion people smoke) It would be very important if they start with researching about smoking, so they can hopefully reduce the amount of smokers in the world.
