The cost of selling one unit of a product is called ________.
A) cost of materials
B) cost of goods sold
C) cost of services sold
D) marginal cost

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) is the cost directly associated with producing and selling one unit of a product. It includes the cost of materials, direct labor, and overhead expenses such as rent and utilities. Marginal cost, on the other hand, refers to the cost of producing one additional unit and varies depending on the level of production. Cost of services sold refers to the cost of providing a service rather than a physical product.

The Cost of Selling One Unit of a Product Is