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Username: BobM

Rating:
Guru Stars

Asked to: Heng Kim

Date Created: 20 Dec 2018
Category 28
Tag Financial
Question What is Cost of Goods Sold - COGS?
Advice from Guru
Hello BobM,

Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs.

Cost of goods sold is also referred to as "cost of sales."

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