Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 37)
What is the purpose of the Cost of Goods Sold (COGS) on the income statement?
To show the cost of operating expenses
To calculate gross profit
To calculate the ending inventory value
To show total revenue
Explanation
COGS is used to calculate the gross profit (Revenue - COGS).
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