Question

____________ the key determinants of the cost of goods sold (COGS), which appears on the P&L statement

Answer 1

Explanation:

Income statement is the key determinants of the cost of goods sold (COGS), which appears on the P&L statement.

Answer 2

Purchases + Direct Expenses the key determinants of the cost of goods sold (COGS), which appears on the P&L statement

Explanation:

Costs incurred in production of goods which are sold by a company is known as "Cost of Goods Sold or COGS".

1. When nil goods left: Wherein all goods are sold out, COGS is then calculated as

COGS = Purchases+Direct Expenses

2. Existence of a Closing Stock: There could some stock which are not sold at the end of the accounting period. At that tim, COGS is calculated as:

COGS = Purchases+Direct Expenses–Closing Stock

3. Existence of an Opening stock: Stock which is carried forward at the starting of the "accounting period" from the "previous accounting period" is taken as "opening stock" & is calculated as:

COGS = Opening Stock+Purchases+Direct Expenses–Closing Stock

To know more

Is cost of goods sold equal to adjusted purchases and Why? How ...

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