Definition
Cost of Goods Sold (COGS), also known as cost of sales or cost of revenue, represents the direct costs associated with producing or purchasing goods sold by a company during a specific period. COGS includes expenses such as raw materials, labor, and overhead costs directly attributable to the production process. Calculating COGS accurately is crucial for determining gross profit and assessing the efficiency of production and inventory management. COGS is subtracted from revenue on the income statement to calculate gross margin.
Our trending searches definitions
Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.