Cost of Goods Sold

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 SoldOverview, Importance of Inventories, Cost of Goods For Resale, Cost of Goods Made By The Business, Identification Conventions, Example, Write-downs and Allowances, Alternative Views

Other articles related to "cost of goods sold, cost, costs, goods sold":

Cost Of Goods Sold - Alternative Views
... Alternatives to traditional cost accounting have been proposed by various management theorists ... include Throughput Accounting, under the Theory of Constraints, under which only direct materials costs are included in cost of goods sold and inventory ...
Tax Deduction - Business Expenses - Cost of Goods Sold
... 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:

    History is strewn with the wrecks of nations which have gained a little progressiveness at the cost of a great deal of hard manliness, and have thus prepared themselves for destruction as soon as the the movements of the world gave a chance for it.
    Walter Bagehot (1826–1877)

    If there were one who lived wholly without the use of money, the State itself would hesitate to demand it of him. But the rich man—not to make any invidious comparison—is always sold to the institution which makes him rich.... Thus his moral ground is taken from under his feet.
    Henry David Thoreau (1817–1862)

    It may cost me twenty thousand francs; but for twenty thousand francs, I will have the right to rail against the iniquity of humanity, and to devote to it my eternal hatred.
    Molière [Jean Baptiste Poquelin] (1622–1673)

    When goods increase, those who eat them increase; and what gain has their owner but to see them with his eyes?
    Bible: Hebrew, Ecclesiastes 5:11.