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, goods and/or sold:
“One must always be aware, to notice—even though the cost of noticing is to become responsible.”
—Thylias Moss, African American poet. As quoted in the Wall Street Journal (May 12, 1994)
“Sir: Between buccaneers, no ceremony; I take your dry goods, and in return I send you pimento; therefore, we are now even. I entertain no resentment.... Nothing can intimidate us; we run the same fortune, and our maxim is that the goods of this world belong to the strong and valiant.”
—For the State of Florida, U.S. public relief program (1935-1943)
“There is thy gold—worse poison to men’s souls,
Doing more murder in this loathsome world
Than these poor compounds that thou mayst not sell.
I sell thee poison; thou hast sold me none.”
—William Shakespeare (1564–1616)