The largest expense item on a manufacturing organization's income statement is most likely to be:
A)Salaries for production workers
B)The depreciation associated with manufacturing equipment
C)The cost of direct materials
D)Cost of goods sold

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) is typically the largest expense for a manufacturing organization. It includes the direct costs attributable to the production of the goods sold by a company, such as the material costs and direct labor.

The Largest Expense Item on a Manufacturing Organization's Income Statement