QuestionWhat do manufacturers spend on goods or services called? Select the correct term.
Studdy Solution
STEP 1
Assumptions1. We are looking for a term that describes what a manufacturer spends for goods or services.
STEP 2
The term that describes what a manufacturer spends for goods or services is "Cost of Goods Sold" or COGS. This term is used in accounting to describe the direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses such as distribution costs and sales force costs.
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