costofgoodssold
Cost of Goods Sold (COGS) is a crucial accounting term that represents the direct costs attributable to the production or acquisition of the goods sold by a company during a period. It is a key component in calculating a company's gross profit, which is revenue minus COGS.
The calculation of COGS can vary slightly depending on the type of business. For businesses that manufacture
COGS does not include indirect expenses such as sales, marketing, general, and administrative expenses, or research
Accurate COGS calculation is vital for several reasons. It helps businesses understand their profitability on each