Cost of Goods Sold
/ˌkɒst əv ɡʊdz soʊld/
Definitions
- (n.) The direct costs attributable to the production of goods sold by a business, including material and labor costs, used to calculate gross profit.
The accountant calculated the cost of goods sold to determine the company's gross margin.
Forms
- cost of goods sold
Related terms
See also
Commentary
Cost of goods sold is a key accounting metric used in legal contexts involving financial disclosures, contract valuation, and tax compliance, requiring precise allocation of direct production costs.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.