APICS CPIM – Basics of Supply Chain Management — Question 7

Which of the following factors is included in cost of goods sold?

Answer options

• A. Revenue
• B. General and administrative expenses
• C. Overhead
• D. Standard cost

Correct answer: C

Explanation

Overhead is included in the cost of goods sold as it represents the indirect costs associated with production. Revenue and general and administrative expenses are not part of the cost of goods sold, as they represent income and operating costs outside of production, respectively. Standard cost may be used for budgeting but is not a direct component of cost of goods sold.