Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS)

The Cost of Goods Sold (or cost of sales) is the total of all costs incurred directly or indirectly in relation to the sale of a product. Deducting cost of goods sold from top-line revenues yields a company’s gross profit. Cost of goods sold includes raw materials, transportation costs relating to purchase of raw materials, labour costs, storage costs of raw materials or semi-finished goods, and other overheads relating to production.

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