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 ?
To compute its franchise taxes, the movie chain (like other businesses) subtracts its cost of goods sold from its total revenue and pays taxes based on the difference.
The proposed regulations required that these sales-based allowances reduce cost of goods sold and not reduce ending inventory cost or value of goods on hand at the end of the tax year.
Inventory should be reduced and the related cost of goods sold should be increased by $210,000.
Collaboration income decreased as a result of lower FUZEON sales in North America and higher cost of goods sold for the collaboration in 2007.
For nearly 70 years, the LIFO method has provided for the proper matching of revenues and expenses in the computation of the cost of goods sold and taxable profits, especially in periods of rising prices.
Multiple Entities and Consolidations Name, Month, Type of Entity, Year Beginning Balances Sales Sales By Product Spreadsheet Miscellaneous Income Cost of Goods Sold Cost Of Goods Sold By Product Spreadsheet Expense Payroll Payroll Spreadsheet Payroll Tax Expense Depreciation Interest Expenses/Term Loans Term Loan Amortization Spreadsheet Interest Expense/Credit Lines Effect Of Beginning Payables On Forecast Other Cash Payments Other Cash Receipts View P & L Cash Flow and Balance Sheets Cleanup Printing Copy Data (to) (from) a Diskette Next Year Forecast Review of Assumptions Used in Forecast Export Forecast to ASCII File
Cost of goods sold for the fiscal quarter ended December 31, 2006 were $430,247 compared to $151,405 for the same period in 2005.
Under this safe harbor, if, in connection with the QPP, conversion costs (direct labor and related factory burden) of the taxpayer account for 20 percent or more of the taxpayer's cost of goods sold of the property, then the requirement is satisfied.
The court agreed with the taxpayer, saying that, because Quaker State was a manufacturer, understating its cost of goods sold was the equivalent of including an item in income.