Cost of goods sold (COGS) - Financial definition
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)