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Cost of Goods Sold (COGS) is the direct cost of producing the goods or services a company sells in a given period. It includes materials and direct labour but excludes indirect costs like marketing or rent. Gross profit = Revenue − COGS.

Guida passo passo

1. 1Start with opening inventory value at the beginning of the period
2. 2Add all purchases and production costs during the period
3. 3Subtract closing inventory value at the end of the period
4. 4COGS = Opening inventory + Purchases − Closing inventory

Esempi risolti