Question

Cost of goods sold refers to ___________. Multiple Choice direct costs attributable to producing the product sold by the firm salaries, advertising, and selling expenses payments to the firm's creditors payments to federal and local governments

Answer 1

Answer:

Direct costs attributable to producing the product sold by the firm

Explanation:

The cost of goods sold is the total cost or investment that the company has made during the manufacture of the goods that are sold by the company. Following amounts are included in the cost of goods sold -

• Cost of all the materials that are used in manufacturing of sold goods.
• The total cost of labor involved in creating the sold good.

Only direct investments are considered in this and all the indirect investments like distribution costs and sales force costs are excluded.