Cost of goods sold, abbreviated as COGS, is the compared inventory at the start of a given period to the end of a given period.
Cost of Goods Sold Formula |
| \( COGS \;=\; IB + P - IE \) |
| Symbol |
| \( COGS \) = cost of goods sold |
| \( IB \) = beginning inventory |
| \( IE \) = ending inventory |
| \( P \) = purchases during the year |
