ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos

Finance: What is COGS (Cost Of Goods Sold)? 40 Views

Share It!

Description:

What is COGS (Cost Of Goods Sold)? The COGS is the cost of materials and labor used to produce merchandise not including shipping and marketing. It is a crucial accounting item for factories and companies that make products for sale in order for analyzing budgeting, operational efficiency and other business factors.

Language:

English Language

Subjects:

Transcript

00:00
Finance allah shmoop What is a cog sze or cost
00:05
of goods sold So yeah what are cogsa Yeah and
00:10
they're not the shoes your mom bought a penny on
00:13
saturday and it's not what the plumber had to remove
00:17
from your toilet consisting of hair clumps toenails and discarded

00:20
q tips Yeah that's clogs and we're talking cogsa Cost
00:24
of goods sold and note that there is no cobb's
00:28
which would be a cost of bads sold when you
00:31
have a business Selling things is pretty much always a
00:33
good well cog czar All the expenses the company needs
00:37
to pay to get their products out the door So
00:39
the company that makes your shoes might have to pay
00:42
for material to make those shoes the process of making
00:45
them the price tags and boxes for the shoes and
00:48
you know shipping delivery and everything else that it takes
00:51
to get the shoes to the store or no to
00:54
your doorstep Those costs all together are the cog sze
00:57
of your uh adidas or nikes or the cog sze 00:01:01.705 --> [endTime] of your clogs
Full Transcript