Cost of goods sold A is the same as gross profit B is the di

Cost of goods? sold:

A.

is the same as gross profit.

B.

is the direct cost of the product sold.

C.

is classified as revenue on the income statement.

D.

is considered a selling expense.

Solution

Answer: B. is the direct cost of the product sold

cost of goods sold = direct material + labour cost + overhead

it was the cost of goods sold