Accounting for IGCSE & O level - Final Statements (Section 14 - No. 3)
Which of the following best describes 'cost of goods sold'?
The total amount of sales.
The total amount of purchases.
The direct costs attributable to the production of the goods sold by a company.
The profit generated before operating expenses are deducted.
Explanation
Cost of Goods Sold represents the direct costs of the goods that were sold.