Cost of Sales
The direct costs a service business incurs to deliver what it sold, including direct labor, travel, and materials used in delivery.
Same idea as COGS, different word, chosen because a service has no goods to cost.
Often Confused With
- Cost of Goods Sold
- COGS is the term for businesses that produce goods; cost of sales is the term for service businesses.
Taught In
See Also
3.4.B.4