Cost of sales & cost of consumption

This query is : Resolved

Gautam Sharma (Querist)
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25 June 2013 Whether there is any difference between COS & Cost of Consumption?
If yes, then give a suitable example & if no then also provide the reason.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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26 June 2013 I am understanding Cost of Consumption as Cost of Goods sold (COGS).
There is a difference between Cost of Sales (COS) and Cost of Goods Sold (COGS).
Ex: U sold goods worth Rs. 10,000 & u incurred purchase cost of Rs. 6,000 and Marketing expenses of Rs. 2,000.
Then COGS as the name says, is Rs. 6,000 since the same is cost of the goods which u sold.
But COS is Rs. 8,000 i.e. Rs. 6,000 + Marketing exp incurred for making that sale of Rs. 2,000.

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