Cost of Goods Sold vs. Cost of Sales: What is the Difference? [vid]

✦ Cost of Goods Sold refers to the cost of producing a product.

It includes direct expenses like raw materials, labor, and manufacturing.

So, it’s more common for industrial businesses, but service companies use it too.

✦ Cost of Sales goes beyond production costs.

It includes all expenses related to selling products or services.

This could mean distribution, marketing, or sales team expenses.

✦ You can learn more about differences in similar financial terms by following our page or checking out our guides and courses.

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