Which of the follow ing statements are true regarding Cost of Goods Sold?

1. Cost of goods sold represents the cost that a company incurred to purchase or produce in\'entory in the cunent period.

2. Cost of goods sold is an expense on the income statement.

3. Cost of goods sold is affected by the inventory method selected by a company (FIFO, LIFO.

etc.).

a. 2

c. 2 and 3

b. 3

d. all three

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