COST OF GOODS SOLD

cost of goods sold  The Cost of Goods Sold formula is: opening inventory plus purchases and production costs minus closing inventory This formula can be used to Cost of Goods Sold measures the costs of producing goods sold by a company Although goods can have direct and indirect costs of production,

Cost of goods sold refers to the direct costs of producing the goods sold by a company This amount includes the cost of the materials and labor COGS is the money a business spends to create, handle and deliver products to its customers It may also be called cost of sales

Cost of goods sold is the direct costs attributable to the creation or production of the goods sold in a company Examples of cost of goods sold Cost of goods sold is calculated using the formula: starting inventory + purchases