Asked by Matthew Payeff on May 02, 2024
Verified
Cost (of goods sold)includes only items that are closely related to production.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.
- Assess the valuation of inventory including the costs associated with labor and materials.
Verified Answer
AA
Abdullah AladibMay 03, 2024
Final Answer :
True
Explanation :
Cost of goods sold, also known as cost of sales, includes the direct costs associated with producing and selling goods, such as materials, labor, and overhead expenses. It does not include expenses that are not directly related to production, such as sales and marketing expenses.
Learning Objectives
- Assess the valuation of inventory including the costs associated with labor and materials.