cost of goods sold

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Cost of goods sold

The total cost of buying raw materials, and paying for all the factors that go into producing finished goods.

Cost of Goods Sold

The cost to a business of making the products it sells over a given period of time. The cost of goods sold includes parts and labor expenses, but does not include shipping, advertising, or other indirect costs. COGS is included on a company's balance sheet and may be subtracted from revenue when calculating the company's gross margin.

cost of goods sold

The cost of purchasing materials and preparing goods for sale during a specific accounting period. Costs include labor, materials, overhead, and depreciation.

cost of goods sold

see COST OF SALES.

cost of goods sold

or

cost of sales

the relevant cost that is compared with sales revenue in order to determine GROSS PROFIT in the PROFIT-AND-LOSS ACCOUNT. Where a trading company has STOCKS of finished goods, the cost of goods sold is not the same as purchases of finished goods. Rather, purchases of goods must be added to stocks at the start of the trading period to determine the goods available for sale, then the stocks left at the end of the trading period must be deducted from this to determine the cost of the goods that have been sold during the period. See STOCK EVALUATION.

Cost of Goods Sold

Beginning inventory plus direct purchases, direct labor costs, and overhead costs less withdrawals for personal use and ending inventory. Sole proprietors compute their cost of goods sold in Part III of Schedule C.
References in periodicals archive ?
com)-- SAPexperts posted a new article, “Use Functional Areas to Enhance Your Cost-of-Sales Reporting” to its Financials Expert knowledgebase.
This article provides the true definition of cost-of-sales reporting and how it's distinguished from period-based reporting.
exhibit 1, page 77) and created a series of five scenarios with varying sales growth rates, cost-of-sales growth rates and advertising expenditures.
Column headers contain the variables that are allowed to change (sales growth rate, cost-of-sales growth rate and advertising for each period) as well as the target cells (net total sales, net total operating income, gross profit ratio and net return on sales).
The integration of ROI analysis provides actual cost-of-sales data, enabling customers to evaluate their search marketing campaigns' performance according to keywords, product pages, search engines or many other sales variables.
Hold down the Ctrl key and click on cell 111 (a cost-of-sales growth rate assumption).
For example, following the steps identified previously, I've created two additional scenarios assuming the company increased advertising to $110,000 quarterly and the resulting sales growth rate and cost-of-sales growth rates are 3.
Calico eSales Suite enables companies to build customer relationships through a Web-based, guided selling experience that is customer driven and enterprise ready resulting in increased revenue and reduced cost-of-sales.