Which of the following costs are reported on the income statement as the cost of goods sold?

A. Product cost
B. Period cost
C. Both product cost and period cost
D. Neither product cost nor period cost

The costs included in the cost of goods sold are essentially any costs incurred to produce the product being sold by a business. The most likely costs to be included within this category are direct labor, raw materials, freight-in costs, purchase allowances, and factory overhead.