Which of the following is NOT included in the cost of goods sold?

Cost of Goods Sold (COGS) refers to the direct costs associated with the production of goods that a company sells. This includes the costs of raw materials, labor involved in production, and utilities necessary for maintaining production facilities.

Raw materials costs are crucial as they represent the materials that are transformed into finished products. Labor costs for production are equally significant, reflecting the wages and salaries paid to workers directly involved in manufacturing the products. Utilities for production facilities are also part of COGS because they are necessary for the functioning of the equipment and space used in production.

On the other hand, office rental expenses do not fall under COGS because they are considered general business operating expenses rather than costs directly tied to the manufacturing of goods. These expenses are related to administrative functions and support the overall operations of the business, but they do not directly contribute to the production of goods sold. Therefore, office rental expenses are appropriately classified outside of COGS.