Costs of Goods Sold

Management · Technology · Solutions · Leadership

COGS means the direct cost of producing a product sold by a company. It excludes indirect expense, like sales force or distribution cost. It does include cost of material and labor used to create said product. Costs of Goods Sold is most commonly used to determine gross profit for a company. It differs from Cost of Revenue or Operating Expenses, in that COGS represents direct expense from physical goods sold.




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