Derick Terrell
Saturday, March 19, 2022
Cost of goods sold refers to all the expenditures directly associated with the production of goods. COGS analysis is crucial for a business in evaluating how efficiently a company is managing its resources. It is an essential aspect of a company's financial statement.
Non-COGs expenses are the opposite of COGs and entail utility expenses, managerial expenses (salaries/wages), advertising and marketing expenses, etc. Costs not directly involved with the goods' manufacturing process are not included in COGS.
Lane Cooper
Thursday, June 02, 2022
COGS and non-COGS are both important for your business and must be recorded separately. Failure to that your financial statements will indicate wrong information. COGS are the costs involved in producing your products or services like direct material and direct labor.
While, non-COGS are all other costs involved in the running of the business except COGS, for example, administerial expenses, selling and distribution expenses, and operating expenses.
Donald Mills
Wednesday, August 10, 2022
The following expenses are not counted in the COGS:
- Advertisement and marketing costs
- Administrative fees
- Legal charges
- Accounting fees
- Distribution costs to customers
- Management salaries
- Rent expense
- Utility bills
- Interest expenses
- Capital expenditures
Overall, as a general rule of thumb, all the costs that are directly not involved in the transportation and selling of the product are not included in COGS.
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