Cost of goods sold (COGS) - Financial definition
Financial acronyms
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Concise definition of the term cost of goods sold
The term cost of goods sold refers to the costs incurred for the production the goods or services sold by a company.
Comprehensive definition of the term cost of goods sold
Cost of goods sold may include
- Materials used to create a product or deliver a service .
- Labor needed to make a product or perform a service .
- Overhead costs relating directly to the production of goods (e.g. the cost of electricity to run an assembly line)