cost of sales

Definition

On an income statement, the cost of purchasing raw materials and manufacturing finished products. Equal to the beginning inventory plus the cost of goods purchased during some period minus the ending inventory. also called Cost Of Goods Sold (COGS).

Use cost of sales in a sentence

The cost of sales was going to be really high and we needed to pay a lot of attention to certain areas.

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You need to know what the cost of sales will be so that you can prepare to handle them fully at the time.

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The cost of sales measure or metric was especially useful for getting a picture of the relationship of the projects inputs and outputs.

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contribution to sales ratio (C/S ratio) days inventory