✦ 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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