Cost of goods sold (COGS) refer to the inventory costs of those goods a business has sold during a particular period. Costs are associated with particular goods using one of several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Costs of goods made by the business include material, labor, and allocated overhead. The costs of those goods not yet sold are deferred as costs of inventory until the inventory is sold or written down in value.
Read more about Cost Of Goods Sold: Overview, Importance of Inventories, Cost of Goods For Resale, Cost of Goods Made By The Business, Identification Conventions, Example, Write-downs and Allowances, Alternative Views
... Nearly all income tax systems allow a deduction for cost of goods sold ... The manner in which cost of goods sold is determined has several inherent complexities, including various accounting methods ... These include Conventions for assigning costs to particular goods sold where specific identification is infeasible ...
Famous quotes containing the words cost of, sold, cost and/or goods:
“To become a token womanwhether you win the Nobel Prize or merely get tenure at the cost of denying your sistersis to become something less than a man ... since men are loyal at least to their own world-view, their laws of brotherhood and self-interest.”
—Adrienne Rich (b. 1929)
“Then he told the news media
the strange details of his death
and they hammered him up in the marketplace
and sold him and sold him and sold him.
My death the same.”
—Anne Sexton (19281974)
“Each is under the most sacred obligation not to squander the material committed to him, not to sap his strength in folly and vice, and to see at the least that he delivers a product worthy the labor and cost which have been expended on him.”
—Anna Julia Cooper (18591964)
“Customers are treasure; goods are but straw.”