Cost of goods sold refers to ________.

A) direct costs attributable to producing the product sold by the firm
B) salaries, advertising, and selling expenses
C) payments to the firm's creditors
D) payments to federal and local governments

Cost Of Goods Sold

The total cost of materials and labor directly associated with the production of goods sold by a business.

Direct Costs

Direct costs are expenses directly associated with the production of goods or services, such as materials and labor.