Question

Cost of goods sold reports the:

A) cost of merchandise available to sell.
B) cost of merchandise purchased.
C) cost times the quantity of goods sold.
D) selling price times the quantity of goods sold.

Answer 1

The correct answer is option C) cost times the quantity of goods sold.

Step-by-step explanation:

The cost of goods sold reports the cost incurred by a business to produce the goods that were sold.

Cost of goods sold reports the cost incurred by a business to produce the goods that were sold. It includes the cost of raw materials, labor, and overhead expenses.

For example, if a business sells 100 units of a product at a cost of $10 per unit, the cost of goods sold would be $1,000 (100 units x $10).