Is COGS a direct or indirect cost?
Asked 4 years ago
I'm trying to understand how COGS fits into inventory analysis and expenses and whether it is a direct or indirect cost. Help?
Payton Lynn
Monday, March 14, 2022
Cost Of Goods Sold (COGS) is a direct cost. It involves all direct costs that relate to the production or manufacturing of the products like direct labor and direct materials. Indirect costs are like marketing costs, rent, utilities, insurance, and others.
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