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Cost of Goods Sold - COGS
Investing Lesson 4 - Analyzing an Income Statement
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Introduction
Income Statement
Revenue / sales
Cost of Goods Sold
Gross profit
Gross margin
The first three lines
Operating Expenses
R&D Expense
SG&A Expense
Goodwill Charges
Extraordinary Events
Accounting for extraordinary events
Oper. income/margin
Interest income and expense
Interest coverage ratio
Depreciation expense
Accum. Depreciation
Straight-line Method
Accelerated and Sum of the Years' Digits Method
Dbl Declining Balance
Comparing Depr. Mths
EBITDA
Income taxes
Minority Interests - cost, equity, and consolidated methods
Unreported earnings
Continuing operations
Accounting changes
Preferred dividends
Net income applicable to common shares
Net profit margin
Basic vs. Diluted EPS
Hiding share dilution
Share repurchases
Return on Equity- ROE
Asset turnover
Return on Assets- ROA
Projecting earnings
Formulas & Calculations
Putting it together

Segment 2

Related Resources
Investing Lesson 1
Investing Lesson 2
Investing Lesson 3
More Lessons
From Other Guides
Making Money - Rising Sales and Cost of Goods Sold COGS
Extraordinary Items on the Income Statement
Elsewhere on the Web
Cost of Sales or Cost of Goods Sold - COGS

Cost of Revenue, Cost of Sales, Cost of Goods Sold (COGS)
Cost of goods sold (COGS for short) is the expense a company incurred in order to manufacture, create, or sell a product. It includes the purchase price of the raw material as well as the expenses of turning it into a product. Cost of goods sold (COGS) is also known as cost of revenue or cost of sales.

Going back to our Pizza Parlor example, your cost of goods sold (COGS) include the amount of money you spent purchasing items such as flour and tomato sauce.

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