Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS)

Dictionary: Cost of goods sold (COGS) refers to the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs that are incurred in bringing the inventories to their present location and condition.