How does the Matching Principle relate to the Cost of Goods Sold?

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How does the Matching Principle relate to the Cost of Goods Sold?

business accounting

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Answer 1

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Matching principle :-

Matching principle is a basic accounting practice which states that "all the expenses must be reported in the same accounting period in which the revenues are earned"

To be in tune with the matching principle, Cost of Goods Sold should be matched with the revenue earned from the goods which were sold

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Answer 2

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How does the Matching Principle relate to the Cost of Goods Sold?

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How does the Matching Principle relate to the Cost of Goods Sold?

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