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 ?
In the import/export trade, total receipts amounted to $3,888.6 billion while operating expenses, cost of goods sold and compensation of employees totalled $3,593.6 billion in 2016.
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.
The fourth item in the calculation of cost of goods sold, "cost of merchandise sold," can be misleading.
The proportion-of-sales method assumes that cost of goods sold as a percentage of sales is the same in all periods.
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." Moreover, taxpayers may use LIFO only if their financial accounting treatment of inventory conforms with their tax accounting method.
Cost of goods sold totaled $336.4 million and averaged $669 per shipped ton.
For retailers, it keeps the cost of goods sold down.
(2) COST OF GOODS SOLD. Consolidated cost of goods sold decreased by $411,447, from $7,028,913 for the six months ended June 30, 2003 to $6,617,466 for the six months ended June 30, 2004.
Sygate Security Agent 4.0 for Windows XP Embedded has been specially optimized for Windows XP Embedded environments where Cost of Goods Sold (COGS) and Total Cost of Ownership (TCO) play an even greater role in deployment decisions.
Calculations for the ratio used the cost of goods sold, which eliminates the changing gross margins variable.
In addition, inventory should be reduced and cost of goods sold increased by $320,000.