Which of the following is equal to the cost of goods sold? A) the sal

QUESTION

Which of the following is equal to the cost of goods sold?

A) the salaries and commissions paid to salespeople
B) the interest paid on debts
C) the amount spent to produce a firm’s merchandise
D) the amount spent on customer refunds
E) total operating expenses

ANSWER

Answer: C
Explanation: C) The cost of producing a firm’s merchandise for sale during a certain period is called cost of goods sold.