Cost of Goods Sold

United States Tax Concept of Cost of Goods Sold

The cost of obtaining and producing goods sold in business. The amount determined by subtracting the value of the ending merchandise inventory from the sum of the beginning merchandise inventory and the net purchases for the fiscal period.

What is the meaning of Cost of Goods Sold?

A definition of Cost of Goods Sold is provided here: A particular type of expense measured by the total cost of merchandise sold (including costs associated with the acquisition, storage, transportation, and packaging of goods).