Answer:
The cost of goods sold
Step-by-step explanation:
The cost of goods sold is the term used to describe the direct expenses incurred by a company in producing the products sold a period. It incorporates the cost of direct labor, direct materials, and overheads used in producing goods that were sold to customers.
The cost of goods sold must not contain indirect expenses such as sales commissions and distribution costs. The aim of calculating the costs of goods sold( COGS) is the find the true cost of the goods purchased by customers. COGS is obtained by adding finished beginning inventory plus net purchases minus finished ending inventory.