cost of goods sold
Direct manufacturing costs
Cost of goods sold is the direct expenses a business incurs to produce or purchase the items it sells—materials, labor, and manufacturing costs.
Abbreviated COGS, it appears on income statements and determines gross profit when subtracted from revenue: Their cost of goods sold rose 12% due to supply chain issues.
The figure excludes indirect costs like marketing or rent.
- expenditureMoney paid out
- expensesMoney spent on things
- income statementPeriodic profit-loss report
- FIFOEarliest in, earliest out
- first in first outInventory accounting method
inventory · accounting · job costing · labor · materials · purchases · depreciation · breakeven · financial statements · write-off · profit margins · margin · wholesale · shrinkage · invoice · markup · manufacturing · gross
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- business accountingaccounts payable, accountant, accounts receivable, accounts, accrual
- financialsincome, profit, earnings, net income, net profit
- business costsadministrative fees, direct labor, raw materials, labor, materials
- cost accountingoverhead, job costing, direct labor, break-even point, contribution margin
- inventory taxtax basis, personal property tax, FIFO, LIFO, book value
cost of goods soldrevenue
Business income total
sales · net sales · gross sales · top line · total revenue
cost of goods soldrevenue
Business income total
gross profit · operating expenses · indirect costs · overhead · net sales
cost of goods soldgross profit
Earnings before operating expenses
gross margin · gross income · contribution margin · profit margin · bottom line