cost of sales


Also found in: Acronyms.

cost of sales

or

cost of goods sold

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 stock 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 which have been sold during the period. See STOCK VALUATION.

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.
References in periodicals archive ?
Cost of sales surged 13.61% to Rs92.72 billion compared to Rs81.61 billion last year, according to the company's profit and loss accounts.
The higher cost of sales, it said, was due to a gush in international prices and higher exchange rates.
Adding to this was GBP1.9 million cost of sales, compared to no cost of sales in 2017.
Cost of sales per ounce was $783/oz in the current quarter compared to $832/oz in the previous quarter on the back of higher ounces sold by subsidiaries offset by higher costs associated with sales.
For the first nine months of 2018, operating EBITDA margin of CHP was at 14 percent, with the margin decline on a full year basis mainly due to the increase in cost of sales during the last quarter.
As a percentage of sales, cost of sales increased by 6 percentage points year-on-year during the first quarter.
MFlex anticipates annual cost savings of approximately $50 million, of which 90% is expected to reduce cost of sales, and 10% is expected to lower operating expenses.
Engro Corporation's overall revenues grew by 36 Percent to Rs 31.3bn, whereas cost of sales was increased by 23 Percent.
The consolidated cash cost of sales for met coal was $135/mt in the fourth quarter of 2012, as compared with $132/mt in the third quarter of 2012 and $139/mt in the fourth quarter of 2011.
In particular, strong growth in North America and China drove our sales gains and, when coupled with cost of sales improvements and effective expense management, we generated a significant operating margin increase.
I like to explain gross profit as the difference between your sales and your cost of sales. The key, from a management perspective, is determining just what expenses make up the cost of sales.
In the second stage, hypothesis testing is done; it employs a controlled experiment (Ryan, 2011) by testing the significance of the relative change of working capital to that of the sales and cost of sales over a span of two decades.