Schedule Cost of Goods Sold (also known as “cost of goods sold”) is a business term that refers to the total costs associated with producing and selling a product or service. This figure includes all direct costs (including raw materials, labor, taxes, etc.) as well as any other indirect costs related to the production process, such as shipping, marketing, and administrative expenses. To calculate Schedule Cost of Goods Sold, simply subtract the ending value of your company’s inventory from the beginning inventory, then add any additional expenses incurred during the accounting period. By tracking this figure over time, businesses can get an accurate picture of their operating performance and determine where they can make adjustments to increase efficiency and profits.