Cost of goods sold (COGS) is the carrying cost of goods sold during the reporting period. For a merchant, it reflects the relevant acquisition costs under the inventory valuation method. Goods purchased during the period are not all immediately cost of sales.[1]
Match sales and stock releases to the same version and unit. Buying more inventory may reduce cash before the goods affect profit through later sales. COGS is not all variable order costs: advertising and general selling expenses do not automatically belong in it.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.