In most industries, Cost of Goods Sold (COGS) represents the direct cost of producing or purchasing the items a company sells. But in the trucking industry, companies don’t sell physical products — they sell transportation services. That raises the question: Does COGS apply to trucking? The answer: Yes — but it looks a little different.ContinueContinue reading “Understanding Cost of Goods Sold (COGS) in the Trucking Industry.”
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Understanding the Cost of Goods Sold (COGS) Account.
What Is Cost of Goods Sold (COGS)? Cost of Goods Sold (COGS) refers to the direct costs associated with producing or purchasing the goods a business sells during a specific period. This account is crucial in determining a company’s gross profit, which is calculated as: Gross Profit = Revenue – Cost of Goods Sold TheContinueContinue reading “Understanding the Cost of Goods Sold (COGS) Account.”
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