Accounting for IGCSE & O level - Final Statements (Section 14 - No. 30)
What is the main purpose of the 'Cost of Goods Sold' section in the income statement?
To show the total amount spent on operating expenses.
To show the expenses directly related to producing the revenue.
To display the company's total sales for the period.
To show the beginning and ending inventory values.
Explication
This section calculates the cost of producing the goods that were sold.