Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
38% - Moderately

Cost of Goods Sold

Synonyms:inventory costs, overhead
Acronyms &
Filed Under: financial-banking, taxation
Tags: accounting, finance

Definition of cost of goods sold (COGS)

cost of goods sold (COGS)
1. An expense shown on an income statement for a business that represents the cost of the inventory for goods sold during the statement period. Costs may include warehousing, taking inventory, shipping, labour and any other associated overhead.

Related Terms and Acronyms:

  • accounts receivable (A/R, AR)   Money owed to a business by purchasers of goods and/or services.
  • business interest expense   Interest acquired in business operations can be deducted as a business expense.
  • business net retention   A measure of the gross writings retained by a company for their own account.
  • gross profit margin   The difference between the sales your business generates and the costs you pay out for goods.
  • inventory   Stock on hand in the form of goods ready for sale. Also includes raw material in the process of being manufactured or completed for sale.

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