account for their resale inventory under cost of goods sold, also known as cost of sales. This refers to the total price paid for the products sold during the income statement's accounting period.

How LIFO and FIFO accounting methods impact a company's inventory outlook Reviewed by Natalya Yashina All companies must ...

When inventory is sold, the wholesale value is transferred over to the income statement as the cost of goods sold (COGS), and the total value is recognized as revenue. Overstating any inventory ...