cost of sales Definition

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).

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Related Terms

Related Terms on BusinessDictionary

inventory to cost of sales ratio
average age of inventory
cost of sales to payables ratio
days accounts payable (Days A/P)
earnings before interest, taxes, depreciation, and amortization (EBITDA)
common-size financial statement
gross margin
inventory to cost-of-goods sold (COGS) ratio

profit factor
sales/volume analysis
turnover ratios
inventory turnover
profit margin
operating loss
operating income

Popular 'Accounting' Terms

current ratio
equity
working capital
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revenue
net income
negotiable
net profit
net worth

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