Financial Statements
Cost of Goods Sold
Definition
What is Cost of Goods Sold?
Direct costs attributable to goods or services sold during a period.
Example in practice
How This Looks in Practice
A manufacturer includes raw materials and production labour in cost of goods sold.
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Related Terms
Financial Statements
Revenue
Income generated from selling goods or services before expenses are deducted.
Financial StatementsSales Growth
The percentage increase or decrease in revenue over a period.
Financial StatementsGross Profit
Revenue minus the direct cost of goods or services sold.
Financial RatiosGross Margin
Gross profit expressed as a percentage of revenue.