The Formula - Deepstash

The Formula

When selling a product, you need to understand the production costs associated with it in a given period, ​​which could be a month, quarter, or year. You can do that by using the cost of goods sold formula. It’s a straightforward calculation that accounts for the beginning and ending inventory, and purchases during the accounting period. Here is a simple breakdown of the cost of goods sold formula:

COGS = beginning inventory + purchases during the period – ending inventory

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jenna_wow

"Yeah, I'm a thrill seeker, but crikey, education's the most important thing. " ~ Steve Irwin

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Cracking the code of the Income Statement

It consists of three main categories:

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