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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
cost of goods sold
see COST OF SALES.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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.
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