Accounting Concepts and Principles

Cost of Sales – Various Formats

Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’.  Basically, most business entrepreneurs and even accountants don’t realize that it has several different […]

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Accounting Concepts and Principles

What is ‘Cost of Goods Sold’?

Simply put, ‘cost of goods sold’ equals the direct costs of materials, human resources, and equipment needed to produce the item sold.  However, this can be confusing because there are many marginal cost items that affect […]