What is cogs

Question

What is cogs

Accepted Answer

COGS stands for Cost of Goods Sold, which refers to the direct costs incurred in producing or purchasing the goods sold by a company.

COGS is an important financial metric used in calculating a company's gross profit.
It includes the cost of raw materials, labor, and manufacturing overhead directly associated with producing the goods.
COGS does not include indirect expenses like marketing, sales, or administrative costs.
It is calculated by subtracting the beginning inventory from the sum of purchases and then subtracting the ending inventory.
For example, if a company had $10,000 worth of inventory at the beginning of the year, made $50,000 in purchases, and had $8,000 worth of inventory at the end of the year, the COGS would be $52,000.

Accepted Answer

Cost of product sold in company is called cogs

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