top of page
Cost-Of-Goods-Sold
The total amount of all costs related to the acquisition and preparation of goods for sale.
Implications
Another term for Cost of Goods Sold (COGS), representing the direct costs of producing or acquiring the goods sold by a company, crucial for calculating gross profit and assessing profitability.
Example
Example: A bakery calculates its cost-of-goods-sold by adding up the costs of flour, sugar, labor, and other ingredients used to produce the baked goods sold during the year.
Related Terms
Different from operating expenses, which include costs like marketing and administration, cost-of-goods-sold is directly related to the production of revenue-generating goods.
Get INSTANT comprehensive market research of any industry
Chat with AII Consultant Now!
bottom of page