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.
Also called Direct Expenses or Direct Cost.
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
Business / Business Administration / Financial Management / Financial Accounting