Question

The cost to produce the goods or services sold for a given period is referred to as A. inventory investment. B. inventory turnover. C. weeks of supply. D. cost of goods sold.

Answer 1

Answer:

D) cost of goods sold.

Explanation:

The cost of goods sold (COGS) includes all the direct costs of producing a good (direct materials and direct labor) plus the manufacturing overhead costs which are indirect costs. Manufacturing overhead costs includes the salaries of production supervisors, machinery and equipment, etc.

But the COGS does not include other indirect expenses like selling and administrative costs.