The cost of goods sold is a variable cost for a retailer,but contains a mixture of variable and fixed production costs for manufacturers.

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The cost of goods sold (COGS) includes all the direct costs related to the production or purchase of the goods sold by a business. For a retailer, COGS typically only includes variable costs such as the cost of inventory and shipping. However, for manufacturers, COGS involves a blend of variable costs (e.g., direct labor and raw materials) and fixed costs (e.g., equipment and overhead expenses) that are needed to produce the goods.

The Cost of Goods Sold Is a Variable Cost for a Retailer,but