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 ?
AMC takes "perceptible to the senses" to include movies, and if that's the case, contends all of its costs for space should be included in its cost of goods sold.
In response to comments that the requirement to allocate sales-based royalties only to cost of goods sold would burden taxpayers using simplified allocation methods, the final regulations make this method optional, instead of mandatory Therefore, the final regulations permit taxpayers to either allocate sales-based royalties entirely to property sold and include those costs in cost of goods sold or to allocate sales-based royalties between cost of goods sold and ending inventory using a facts-and-circumstances cost-allocation method described in Regs.
For example, if a taxpayer elected to take the cost of goods sold deduction (which is limited to retailers, manufacturers, and contractors) but did not qualify, the taxpayer could not amend its franchise tax return to elect to deduct compensation.
Buyers deploying SCF can maintain that suppliers will now realize a reduction of the 4 percent financing cost of goods sold to it, thus resulting in lower prices.
Boyle concluded, "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.
In addition, inventory should be reduced and cost of goods sold increased by $320,000.
From that, Troy subtracts the cost of goods sold, $160,000 (what he paid for his computer products).
Collaboration income increased as a result of a cost of goods sold credit recognized in the fourth quarter of 2007, offset, in part, by lower FUZEON sales in North America and higher cost of goods sold 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.
Some account for a high percentage of SG & A costs in the SG & A cost category, while others may account for considerable SG & A headcount and cost in the cost of goods sold (COGS).
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.
The study compares and contrasts each capacitor dielectric with respect to cost structure, and focuses on the unique cost relationship between variable raw material charges for each product line and their overall impact on cost of goods sold.