Why is the cost of goods sold account part of a trading business only?
The cost of goods sold account is part of a trading business, but not seen in the income statement of a service business. This is because in a service business, no
goods are sold to the consumers.

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For a service company there is no costs of goods sold because no goods were purchased for resale.The major costs found in the cost structure of a service outfit is manpower costs,since people with requisite knowledge form the main reason for business existence

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Why is the cost of goods sold account part of a trading business only? The cost of goods sold account is part of a trading business, but not seen in the income statement of a service business. This is because in a service business, no goods are sold to the consumers. MATERIAL

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Why is the cost of goods sold account part of a trading business only?
The cost of goods sold account is part of a trading business, but not seen in the income statement of a service business. This is because in a service business, no
goods are sold to the consumers.

MATERIAL