Calculating the Cost of Goods Sold

cost of goods sold  In conclusion, understanding the distinction between the Cost of Goods Sold and Operating Expenses is essential for business owners and The COGS ratio is your restaurant COGS as a percentage of total sales To calculate the COGS ratio, divide your total food and beverage costs by your total

Cost of Sales or Cost of Goods Sold is an important financial performance metric which tracks your ability to manufacturedeliver services Because COGS affects a company's overall profitability, it also affects stock performance If revenue remains the same or increases while cost of goods sold

COGS = Beginning Finished Goods Inventory + Cost of Goods Manufactured Cost of Goods Sold also called cost of sales or cost of revenue The category of expenses directly related to producing a product or service