Cost of goods sold excludes___________?
Correct answer: D. Postage & Stamps
- A. Opening Stock
- B. Carriage inward
- C. Wages & Salary
- D. Postage & Stamps
Explanation
Cost of goods sold includes opening inventory, inward carriage, and production costs such as direct wages. Postage and stamps are selling or administrative expenses, so they are excluded from cost of goods sold.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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