United States home front during World War II. United States home front during World War II supported the war effort in many ways, including a wide range of volunteer efforts and submitting to government-managed rationing and price controls. The labor market changed radically.
It is also known as cost of sales. Cost of goods sold is an expense charged against sales to work out a gross profit (see definition below). So, for example, we may have sold 100 units this year at $4 each, and these 100 units that we sold cost us $3 each originally.So our sales would be $400 and our cost of the goods we sold (cost of sales) would amount to $300. This would result in a gross profit of $100 (sales minus cost of sales).Cost of goods sold is not the same as purchases, as you will see from our examples below.ost of goods sold is an expense charged against sales to work out a gross profit (see definition below). So, for example, we may have sold 100 units this year at $4 each, and these 100 units that we sold cost us $3 each originally.
If the technology sold in the previous example sold for $10, then the company would be expecting 36,000 units to sell over the course of a year for a total of $360,000 in revenue. The per-unit cost of the product would be $2.78 per unit, or $100,000 in costs divided by 36,000 units sold.