Cost of Sales

The direct costs a service business incurs to deliver what it sold, including direct labor, travel, and materials used in delivery.

Same idea as COGS, different word, chosen because a service has no goods to cost.

Often confused with

Cost of Goods Sold: COGS is the term for businesses that produce goods; cost of sales is the term for service businesses.

Taught in

3.4 Business Expenses

See also

3.4.B.4