Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 25 - No. 47)

What does the term 'Cost of Goods Sold' represent?
The cost of producing goods available for sale during a period.
The total revenue generated from the sale of goods.
The cost of goods still on hand at the end of a period.
The difference between revenue and operating expenses.

Explanation

COGS reflects the direct costs associated with producing the goods that were actually sold during the period.

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