Definition : Cost Of Goods Sold
Category : Business » Accounting
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What does COGS mean?

Cost Of Goods Sold (COGS) refers to the costs that go into creating the products, in order to manufacture, create, or sell a product. COGS includes the direct costs of producing a product for sale.

Cost of Goods Sold (COGS) = Beginning Inventory + Inventory Purchases – End Inventory

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