How does the sale of finished goods impact the cost of goods sold in a manufacturing company's financial statements?

• A. It has no impact on the cost of goods sold.
• B. It increases the cost of goods sold as a liability on the balance sheet.
• C. It increases the cost of goods sold as an expense on the income statement.
• D. It decreases the cost of goods sold as an asset on the balance sheet.

Answer: (C)