Cost of Goods Sold (COGS)

Last Updated: Jun 6, 2019

Created By :

Last Edited By :

Created On :

Cost of Goods Sold (COGS) are the costs directly attributable to the production of the goods sold by a company, including the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses, such as distribution costs. From an accounting perspective, cost of goods sold appears on the income statement and can be deducted from revenue to calculate a company's gross margin.