Cost of Goods Sold

Definition

  • An expense shown on an income statement for a business that represents the cost of the inventory for goods sold during the statement period. Costs may include warehousing, taking inventory, shipping, labour and any other associated overhead.

Synonyms
overhead, inventory costs

Acronyms
COGS

Related Terms and Acronyms

  • Accounts Receivable (AR, A/R) Acronym, Important,
    • Money owed to a business by purchasers of goods and/or services.
  • Business Interest Expense Definition,
    • Interest acquired in business operations can be deducted as a business expense.
  • Business Net Retention Definition,
    • A measure of the gross writings retained by a company for their own account.
  • Gross Profit Margin Definition,
    • The difference between the sales your business generates and the costs you pay out for goods.
  • Inventory Definition,
    • Stock on hand in the form of goods ready for sale. Also includes raw material in the process of being manufactured or completed for sale.
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