Which term best describes the sum of costs of goods produced and sold?

The sum of the costs associated with goods that have been produced and sold is best described as the Cost of Goods Sold (COGS). This term specifically refers to direct costs tied to the production of products that a company sells during a given period. COGS includes all the costs of manufacturing the products, including materials and labor directly used in the production process, thereby providing a clear picture of the expenses incurred in generating revenue from sales.

Regarding the other options, Operating Expenses refer to the costs required to manage and administer a business but do not directly relate to the sales of goods. Net Profit indicates overall profitability after all revenues and expenses have been accounted for, encompassing both direct and indirect costs, and is not limited to just the costs of goods. Variable Costs include expenses that vary directly with production levels, but this term is broader and does not specifically pinpoint the direct costs of goods sold. Thus, the distinct definition and direct association with production and sales make Cost of Goods Sold the most accurate term in this context.