Series 79: 1.2.2.2. Cost Of Goods Sold And Gross Profit

1.2.2.2. Cost of Goods Sold and Gross Profit

Moving down the income statement, the next piece of information presented is an amount for cost of goods sold (COGS), or for companies that provide services rather than goods, cost of revenues or cost of sales. Regardless of which term the income sheet uses, the number shown reflects the direct cost to the company to produce the goods or services it sold during the period. The COGS figure incorporates such costs as the cost of labor and the cost of materials (to turn into finished goods or to resell) directly attributable to the production of goods or provision of services and will generally be higher as sales increase. COGS also includes overhead that can be directly all