It is customary to identify the major inventory categories in the balance sheet and the cost of goods sold in the income statement.

Question

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In financial reporting, it is standard practice to detail major inventory categories on the balance sheet to show the value of different types of inventory held by a company. Similarly, the cost of goods sold (COGS), which represents the direct costs attributable to the production of the goods sold by a company, is reported on the income statement, reflecting the expense associated with those sales.

It Is Customary to Identify the Major Inventory Categories in the Balance