Cost of Goods Sold (COGS)
The direct costs attributable to producing the goods or services that a company sells during a period.
COGS includes raw materials, direct labor, and manufacturing overhead for physical goods. For software and service businesses, it typically covers hosting costs, third-party API fees, and customer support labor directly tied to service delivery.
What companies include in COGS varies significantly and affects gross margin comparisons. Document intelligence extracts COGS breakdowns and accounting policy disclosures, enabling analysts to make apples-to-apples comparisons across companies with different classification practices.
Related Terms
More financial Terms
10-K Filing
An annual report filed with the SEC that provides a comprehensive overview of a public company's financial performance.
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization — a measure of a company's operating profitability.
Amortization
The gradual reduction of an intangible asset's value or a loan balance through scheduled periodic payments.
Revenue Recognition
The accounting principle that determines when and how revenue is recorded in financial statements.
Cash Flow Statement
A financial statement that tracks the movement of cash in and out of a business across operating, investing, and financing activities.
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