Cost of goods sold is the cost of the merchandise that a company acquires or produces and then sells.

Question

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Cost of goods sold (COGS) is the cost of the inventory that a company sells. It includes the cost of the products plus any additional expenses, such as shipping fees, import duties, and customs fees, among others. COGS is an essential component of a company's income statement, as it helps measure the profitability of its sales operations.

Cost of Goods Sold Is the Cost of the Merchandise