Cost Of Goods Sold - COGS

TERM OF THE DAY - OCTOBER 11, 2011 Add Investopedia to Safe Sender List Find Investopedia on Cost Of Goods Sold - COGS What Does it Mean? The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs. COGS appears on the income statement and can be deducted from revenue to calculate a company's gross margin. Also referred to as "cost of sales". Investopedia Says... COGS is the costs that go into creating the products that a company sells; therefore, the only costs included in the measure are those that are directly tied to the... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - 5 Tips For Reading A Balance Sheet The balance sheet, along with the income and cash flow statements, is an important tool for investors to gain insight into a company and its operations.  View the Slideshow » Special Feature - Technical Analysis Do you prefer analyzing charts rather than financial statements? Technical analysis does just that. Click here for more. Related Terms Accrual Accounting Cash Flow Return On Investment - CFROI Cost Of Labor Cost Of Revenue Discounted Cash Flow - DCF See More » Related Links Operating Leverage Captures Relationships Introduction To Fundamental Analysis Measuring Company Efficiency See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.