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Cost of Goods Sold (COGS)

The cost of goods sold signifies the total expense of purchasing the products sold, meaning the cost appears first when you sell the product.

The cost of goods sold represents the actual cost incurred when products are sold. Various methods exist to determine this cost, especially if the products were purchased at different times and prices. While the cost of goods sold typically aligns with the purchase price, it can also include additional expenses associated with product handling and transportation to your warehouse. This encompasses the overall cost of the product itself.

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