ECONOMICS

Detailed explanation-1: -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.

Detailed explanation-2: -Cost of goods sold is also referred to as “cost of sales."

Detailed explanation-3: -The Cost of Goods Sold, or COGS is a financial metric that depicts the total costs incurred with manufacturing or procuring any finished goods that were sold within a given financial period. COGS essentially represents the expenses that a company needs to recover when selling an item in order to break even.

Detailed explanation-4: -Cost of goods sold (COGS) definition It appears on an income statement and typically includes money spent on raw materials and labour. It does not include coss associated with marketing, sales or distribution. Cost of goods sold (COGS) is the direct cost of making a company’s products.

Detailed explanation-5: -Cost of sales, sometimes known as cost of goods sold (COGS), is simply the cost involved in directly producing the goods or services that you actually sell. It’s important that you track the costs to ensure that you’re always profitable.