Synonym: Cost of Goods Sold (COGS) = Direct Expenses = Direct Cost

Any expenses which can be traced and linked directly to a unit of Product sold.

The word "Goods" in the name "Cost of Goods Sold" is a misnomer as COGS applies to any Product sold including a Service.

COGS typically include:

Materials and services used in manufacturing and procurement of the Product
Labour used in manufacturing and procurement of the Product, including labour taxes
Liabilities related to manufacturing and procurement of the Product, such as royalty

See also