For a manufacturer, which costs belong in cost of goods sold?

1. Cost of goods sold is the total expense of buying or producing the firm's goods or services. 2. For manufacturers it takes in all costs directly related to production: purchases of raw materials and parts, labor, and factory overhead such as utilities, factory maintenance and machinery repair. 3. For wholesalers and retailers it is instead the cost of goods bought for resale. 4. Advertising, sales commissions, management salaries, rent and office supplies are operating expenses, which are the costs of running the business rather than making the product. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.5 The Income Statement_