Cost Of Goods Sold Is An Expense Account

Cost Of Goods Sold (or COGS) is a type of expense account that includes any costs involved in making and selling products. This includes the cost of raw materials, labor, manufacturing overhead, and related expenses. Every business needs to know and understand their COGS so they can be aware of how much it’s costing them to produce their products. Keeping an accurate COGS is one of the most important steps in running a successful business!