This is a question that we get a lot from newer businesses expecially and for those that are new to the accounting space. Rather than having me explain, I will leave this question our for some of the accounting experts in the community to answer for you and discuss. Feel free to ask questions on this thread if you aren't sure if something should be included in COGS or not.
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Nancy Orbenposted
about 1 month ago
In general, COGS includes all expenses related to the labor (employees), manufacturing operations (equipment rental, depreciation, utilities, rent) and raw materials/product costs (Freight in and duty). It does not include selling expenses such as freight out and sales commissions.
This is a question that we get a lot from newer businesses expecially and for those that are new to the accounting space. Rather than having me explain, I will leave this question our for some of the accounting experts in the community to answer for you and discuss. Feel free to ask questions on this thread if you aren't sure if something should be included in COGS or not.
0 Votes
1 Comments
Nancy Orben posted about 1 month ago
In general, COGS includes all expenses related to the labor (employees), manufacturing operations (equipment rental, depreciation, utilities, rent) and raw materials/product costs (Freight in and duty). It does not include selling expenses such as freight out and sales commissions.
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