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Cost of goods sold (COGS) refer to the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Costs of goods made by the business include material, labor, and allocated overhead. The costs of those goods not yet sold are deferred as costs of inventory until the inventory is sold or written down in value. ==Overview== Many businesses sell goods that they have bought or produced. When the goods are bought or produced, the costs associated with such goods are capitalized as part of inventory (or stock) of goods.〔U.S. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC 330-10-30-1 ); International Accounting Standards (IAS 2 ), paragraph 10.〕 These costs are treated as an expense in the period the business recognizes income from sale of the goods.〔IAS 2, paragraph 34.〕 Determining costs requires keeping records of goods or materials purchased and any discounts on such purchase. In addition, if the goods are modified,〔This includes manufacturing from parts or raw materials.〕 the business must determine the costs incurred in modifying the goods. Such modification costs include labor, supplies or additional material, supervision, quality control and use of equipment. Principles for determining costs may be easily stated, but application in practice is often difficult due to a variety of considerations in the allocation of costs.〔ASC 330-10-30-2.〕 Cost of goods sold may also reflect adjustments. Among the potential adjustments are decline in value of the goods (i.e., lower market value than cost), obsolescence, damage, etc. When multiple goods are bought or made, it may be necessary to identify which costs relate to which particular goods sold. This may be done using an identification convention, such as specific identification of the goods, first-in-first-out (FIFO), or average cost. Alternative systems may be used in some countries, such as last-in-first-out (LIFO), gross profit method, retail method, or combinations of these. Cost of goods sold may be the same or different for accounting and tax purposes, depending on the rules of the particular jurisdiction. Certain expenses are included in COGS. Expenses that are included in COGS cannot be deducted again as a business expense. COGS expenses include: * The cost of products or raw materials, including freight or shipping charges; * The cost of storing products the business sells; * Direct labor costs for workers who produce the products; and * Factory overhead expenses. * Depreciation 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Cost of goods sold」の詳細全文を読む スポンサード リンク
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