Question

Cost of goods sold

Answer 1

Answer:

The correct option is d.

Explanation:

Cost of goods sold: The cost of goods sold is that cost which sells the product at the cost price. It is directly related to the production level.

Example: purchase price, raw material cost, labor cost, etc.

It includes administration costs but not include research and development cost.

Neither it is found on the balance sheet, it shows on the income statement.

Nor, it records partly completed goods because it has come under work in progress.

So, the A,B, and C are incorrect statements while D is the correct statements.

Hence, the correct option is d. Cost of goods sold is the total product cost for the units sold during a period.

Answer 2

Answer:

The correct answer to the following question is option D) this is the total product cost for the units that are sold during a period .

Explanation:

COGS which is also know as cost of goods sold, can be described as the cost which is directly attributable to the production of products or goods that are sold by a company during a given period of time. In this cost we will include the material cost and direct labor cost which is incurred while producing the goods and indirect expenses like sales cost and distribution cost would not be included.