Which of the following options is considered a cost of goods sold?

Cost of goods sold (COGS) refers specifically to the direct costs attributable to the production of the goods sold by a company. This includes all costs directly involved in creating a product, which typically encompasses the materials and labor used.

In this context, materials used in production are directly tied to the manufacturing of goods. These costs are essential for calculating how much it costs to produce the items being sold, thereby directly impacting a business's profitability and pricing strategy. Accurately accounting for these materials is crucial for understanding the gross margin and financial health of a business.

Other options, while they may represent legitimate business expenses, do not fall under COGS. Advertising expenses relate to promoting products and attracting customers rather than to the production process. Similarly, the salary of sales staff, while important for revenue generation, is considered an operating expense rather than a cost of goods sold because it is not directly linked to the manufacturing of the products. Office supplies are also categorized as operating expenses, relevant for administrative functions rather than production activities.