What does the cost of goods sold (COGS) indicate for a given period of time?

The correct option illustrates that the cost of goods sold (COGS) represents the direct costs attributable to the production of the goods that a company sells during a specific period. This includes expenses such as the cost of materials and labor directly used to create the product, reflecting the total costs associated with producing merchandise that has been sold to customers.

By focusing on the costs related to items that have been sold, COGS provides insights into the efficiency of a business's operations and its cost management. It helps gauge profitability because it's subtracted from revenue to determine gross profit. In this context, COGS does not account for inventory that has not been sold or is remaining (which is about remaining inventory), nor does it capture total sales (which is revenue that may include unsold items). It also does not relate to employee performance metrics, which are entirely separate aspects of business analysis.