Question

Distinguish between the following
a) Cost of Goods Sold and Cost of Coads Produced
b) Profit and Loss Account and Balare Sheet​

Answer 1

Answer:

The cost of goods manufactured is composed of material and production costs, process costs and overhead (such as material and production overhead). The cost of goods sold consists of the cost of goods manufactured together with sales and administration overhead costs.

Explanation:

Here's the main one: The balance sheet reports the assets, liabilities and shareholder equity at a specific point in time, while a P&L statement summarizes a company's revenues, costs, and expenses during a specific period of time.

Answer 2

Answer:

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.