Understanding how to calculate the Cost of Goods Sold (COGS) is essential for any business owner. COGS represents the direct ...

For tax purposes, a company can deduct cost of goods sold; the more expansive cost of sales category is nondeductible. Related investing topics How to Invest in Stocks: 5 Steps to Get Started ...

Cost of goods sold can be determined after sales revenue and before gross profit on a multiple-step income statement. The cost of goods sold balance is an estimation of how much money the comp.

The business spent $130,000 on direct costs to produce or purchase goods sold during the period. If revenue was $250,000, then gross profit = $250,000 – $130,000 = $120,000. The gross profit ...

Columnist John D. Wagner explains why gross profit margin should not rise or fall with sales and reasons that it could.