Cost of Goods Sold (COGS) is classified as a(n) (account type) Cost of Goods Sold (COGS) is recorded on the (financial statement) Cost of Goods Sold (COGS) has a normal balance (debit or credit)

expense,

income statement,

debit

Explanation:

Cost of goods sold refers to all those direct costs and overhead costs which have been incurred in manufacturing those products, which have been finished and sold.

Cost of goods sold represents an expense account and it is a nominal account and as per the accounting rules for nominal accounts, expenses and losses are debited while incomes and gains are credited.

Since it is an expense, a debit to such an account increases it's balance while a credit reduces it's balance. Cost of goods sold account has a normal debit balance.

Cost of Goods Sold account is reported in the income statement and deducted from sales revenue to arrive at Gross Profit.

Cost of Goods Sold  = Sales Revenue - Gross Profit

Also, cost of goods sold can also be computed as,

Cost of Goods Sold = Opening stock + Purchases + Direct Expenses - Closing stock

88 because 4 plus 4 equals 8. 40 plus 40 equals 80. 80 plus 8 equals 88