A certified public accountant is one who has earned a license in his or her state that attests to a high degree of skill, training, and experience. In addition to passing an accounting examination, a candidate must have the proper business experience, education, and moral character in order to qualify for the license. The letters CPA are commonly used and generally recognized to be the abbreviation for the title Certified Public Accountant.
For manufactured goods, direct costs also include raw materials, labor, and production expenses. Other costs, such as transportation and advertising, are not included in COGS. To calculate COGS, beginning inventory is added to current period purchases, and ending inventory is then deducted.
Cost of Goods Sold â What is cost of goods sold? The term cost of goods sold (COGS) refers to the costs that go into creating the products that a company sells or the costs of acquiring goods to sell. Itâs easy to keep track of expenses for your business with Debitoor accounting software. Try it free for 7 days. Cost of goods sold refers to the stock costs of the goods that a company has sold over a particular period. The COGS is determined by the stock valuation method that is used by the company, such as first-in first-out (FIFO), last-in first-out (LIFO), or average cost.