What are COGS, what are the accounts affected by COGS?
What are COGS, what are the accounts affected by COGS?
What are some examples of businesses that sell both products and services that are tied to each other?
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Solution Preview
Cost of Goods sold is a total of all the costs that were incurred to produce the product that was sold. For an example, let's use a company that frames art for customers:
The revenue would be the total collected from customers for each individual framing job.
The costs to frame a customer picture would include
1. Wood or metal framing material
2. Mats, if customer requested any
3. Glass to protect the ...
Solution Summary
In a 278 word solution, the response carefully explains the various types of costs that are typically part of cost of goods sold. The accounts affected as also listed with explanations.
$2.19