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