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Answer Posted / rishikesh-- singhrishikesh3@gm
cost of goods sold = (opening stock + purcheses + direct
expenses)-(closing stock+direct income)
but in general terms we can say
COGS=all direct cost related to production of the good sold
by company, It excludes
indirect expenses such as distribution costs and sales
force costs. COGS appears on the income statement and can
be deducted from revenue to calculate a company's gross
margin.
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