Cost of goods sold does NOT include which of the following?

Cost of Goods Sold (COGS) includes all the direct costs associated with the production of goods that a company sells. This encompasses raw materials, production expenses, and labor costs, all of which are essential components directly tied to the manufacturing process.

Shipping expenses, on the other hand, are generally classified as selling expenses rather than direct costs of goods. While they are necessary for delivering finished products to customers, they fall outside the scope of COGS because they do not directly relate to the creation of the product itself. Therefore, shipping expenses are not included in the calculation of COGS, making this the correct choice.