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Cost of Goods Sold on an Income Statement: Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What's the best explanation of cost of goods sold?

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1. On which of the following financial statements is cost of goods sold reported?

2. What's the difference between a direct expense and an indirect expense for purposes of COGS?

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About This Quiz & Worksheet

This quiz/worksheet combo will help gauge your understanding of cost of goods sold on an income statement. You will be quizzed on topics like direct expenses and calculating cost of goods sold.

Quiz & Worksheet Goals

This quiz and worksheet test your knowledge of:

  • How cost of goods sold is calculated
  • Financial statements that include cost of goods sold
  • Determining cost of goods manufactured
  • How direct expenses relate to the cost of goods sold

Skills Practiced

Use this quiz and printable worksheet to test the following skills:

  • Distinguishing differences - compare and contrast topics, like direct expenses and indirect expenses for COGS purposes
  • Problem solving - use acquired knowledge to solve financial practice problems regarding cost of goods sold and cost of goods manufactured
  • Defining key concepts - ensure you can accurately describe cost of goods sold

Additional Learning

The accompanying lesson, Cost of Goods Sold on an Income Statement, can give you more precise details. This lesson helps you:

  • Interpret financial statements
  • Find out how COGS are reported
  • Calculate the cost of services
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