Cost of Goods Sold May Include All of the Following

question 54

Multiple Choice

Cost of goods sold may include all of the following EXCEPT for:

• A)the actual cost of the item.
• B)shipping costs.
• C)insurance.
• D)management salaries.

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Definitions:

Direct Costs

Expenses that are directly attributed to the production of goods or services, such as materials and labor.

Territory

An area or region designated for specific business activities or responsibilities, often defined for sales purposes.

Corporate Customers

Business entities or organizations that purchase goods or services for their operational needs, as opposed to individual consumers.

Segment

A group of people or organizations sharing one or more characteristics that cause them to have similar product needs.