fundamental

Cost Of Goods Sold

Cost of Goods Sold (COGS) is the direct costs tied to producing or purchasing the goods sold during a period, including materials, direct labor, and allocated manufacturing overhead; it excludes selling, general, and administrative expenses.

Example: Example: Net sales were $1,200,000 and COGS were $700,000 for the year, yielding gross profit of $500,000.

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