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
Famous quotes containing the words cost of, cost, goods and/or sold:
“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 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)
“What is a man if he is not a thief who openly charges as much as he can for the goods he sells?”
—Mohandas K. Gandhi (1869–1948)
“When white men were willing to put their own offspring in the kitchen and corn field and allowed them to be sold into bondage as slaves and degraded them as another man’s slave, the retribution of wrath was hanging over this country and the South paid penance in four years of bloody war.”
—Rebecca Latimer Felton (1835–1930)