Accounting for IGCSE & O level - Final Statements (Section 14 - No. 39)
In the context of an income statement, what does the term 'cost of sales' refer to?
Expenses incurred in the current year.
The costs directly related to the goods sold.
The administrative costs of the business.
The cost of the assets the business owns.
Paskaidrojums
Cost of sales refers to the direct costs associated with the goods sold, like the cost of raw materials or the cost of finished goods.