Issues in Costing

The cost of goods sold is basically the cost that incur in either making of the product in the goods industry or the cost that incur in providing the services in the service industry. It includes all the direct cost that can incur in the manufacturing of the product. For instance the cost of raw material and the cost of labor is the direct cost and hence will be considered in the cost of goods sold Stoner, G. (2010, August).

The cost of raw material: It is the material that is used in the manufacturing of the goods ...