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
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“The cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.”
—Henry David Thoreau (1817–1862)
“The one regret I have about my own abortions is that they cost money that might otherwise have been spent on something more pleasurable, like taking the kids to movies and theme parks.”
—Barbara Ehrenreich (b. 1941)
“A person far from home is not valued highly, but goods imported from afar are.”
—Chinese proverb.
“This death’s livery which walled its bearers from ordinary life was sign that they have sold their wills and bodies to the State: and contracted themselves into a service not the less abject for that its beginning was voluntary.”
—T.E. (Thomas Edward)