What is cost of goods sold answer?

What is cost of goods sold answer?

Cost of goods sold (COGS) is the cost of acquiring or manufacturing the products that a company sells during a period, so the only costs included in the measure are those that are directly tied to the production of the products, including the cost of labour, materials, and manufacturing overhead.

Is cost of goods sold an asset?

Cost of goods sold is not an asset (what a business owns), nor is it a liability (what a business owes). It is an expense.

What is the formula of cost goods sold?

At a basic level, the cost of goods sold formula is: Starting inventory + purchases − ending inventory = cost of goods sold.

What is cost of goods sold quizlet?

An inventory costing method that allocates the cost of goods available for sale between ending inventory and cost of goods sold based on a weighted average cost per unit. The sum of the cost of beginning inventory and the cost of purchases. You just studied 15 terms!

What is another name for cost of goods sold?

COGS is sometimes referred to as cost of merchandise sold or cost of sales. Some companies that sell a mix of products and services prefer a broader term, cost of revenue, of which COGS is one component.