What should be included in COGS?
Asked 4 years ago
I am trying to work out my cost of goods sold and am unsure how exactly. What costs and expenses should I be including. Should I be including overheads, sales, and marketing costs in this or can they be excluded? What classifies as direct or indirect costs?
Avik Das
Tuesday, October 05, 2021
COGS or Cost of goods sold is the total cost of goods while manufacturing total products. It is the cost of products a company sells during a period. When it comes to COGS, direct product costs should be added such as manufacturing overhead, total raw materials, and labor charges. Costs like distribution and marketing shouldn't be added to COGS.
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