Chapter 7, Problem 1MC

Which of the following statements are true regarding Cost of Goods Sold?

1. i. Cost of Goods Sold represents the costs that a company incurred to purchase or produce inventory in the current period.
2. ii. Cost of Goods Sold is an expense on the income statement.
3. iii. Cost of Goods Sold is affected by the inventory method selected by a company (FIFO, LIFO, etc.).
4. a. (i) only
5. b. (ii) and (iii)
6. c. (ii) only
7. d. All of the above.