Here's a practice quiz focusing on the cost of goods sold (COGS):
**Cost of Goods Sold (COGS) Practice Quiz**
**Question 1:**
What is the cost of goods sold (COGS)?
a) The total cost of producing goods or services
b) The total cost of inventory sold during a specific period
c) The total revenue generated from selling goods or services
d) The total profit earned from selling goods or services
**Question 2:**
Which of the following costs is included in the calculation of COGS?
a) Selling expenses
b) Research and development costs
c) Direct labor costs
d) Administrative expenses
**Question 3:**
What is the formula for calculating COGS?
a) Beginning Inventory + Purchases - Ending Inventory
b) Beginning Inventory - Purchases + Ending Inventory
c) Beginning Inventory + Purchases + Ending Inventory
d) Beginning Inventory - Purchases - Ending Inventory
**Question 4:**
Which financial statement typically includes the COGS?
