Cost of goods sold:

A) It is another term for merchandise sales.

B) Is the term used for the cost of buying and preparing merchandise for sale.

C) It is another term for revenue.

D) It is also called gross margin.

E) It is a term only used by service firms.

The correct answer is B) Is the term used for the cost of buying and preparing merchandise for sale.

Explanation:

The cost of goods sold includes all the values assumed within the production chain of the product, including transportation, distribution and displays on the shelf. These values must be determined from the beginning of the production process, using reliable measurement and costing methods; likewise, the profit margin and other associated values must be considered to calculate the final price that will be offered to the buyer.