Accounts

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Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2010 What is the diference between cost of goods sod and sales?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 June 2010 Cost of goods sold is the Cost value of which the goods are sold

Sales is the selling value of which the goods are sold

Difference between this two is Gross profit

CS Richa Sharma

CS Richa Sharma (Expert)
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26 June 2010 Cost of Good Sold, abbreviated COGS, is a financial accounting term which describes the direct costs attributable to the production of goods sold by a company. This includes material cost and direct labor cost and excludes indirect cost like advertising or R&D.They are also referred to as cost of sales.

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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27 June 2010 Cost of Goods sold means Various kind of cost which will incur for selling of goods.In other words these costs are incidental and ancillary to selling goods. These are cost part.

Sales on the other hand Revenue part.

The difference of above two will be Gross profit.

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