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:
“I acknowledge that the balance I have achieved between work and family roles comes at a cost, and every day I must weigh whether I live with that cost happily or guiltily, or whether some other lifestyle entails trade-offs I might accept more readily. It is always my choice: to change what I cannot tolerate, or tolerate what I cannot—or will not—change.”
—Melinda M. Marshall (20th century)
“The goods of fortune ... were never intended to be talked out of the world.—But as virtue and true wisdom lie in the middle of extremes,—on one hand, not to neglect and despise riches, so as to forget ourselves,—and on the other, not to pursue and love them so, as to forget God;Mto have them sometimes in our heads,—but always something more important in our hearts.”
—Laurence Sterne (1713–1768)
“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)