A company may report high net income through a number of means including normal revenues, one-time...

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Accounting

A company may report high net income through a number of meansincluding normal revenues, one-time tax benefits, or otheraccounting activities. If a company sales merchandise, it isimportant to understand their operating revenues which will includeincome statement reporting of both Cost of Goods Sold and GrossProfit on Sales.
Class, what is Cost of Goods Sold? Provide examples of the typesof entries recorded to this account. Next, what is Gross Profit onSales? Why is understanding this section of the Classified IncomeStatement so important to managers, investors, and creditors?

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Cost of goods sold COGS This is the aggregate amount of expenses which is directly associated with making a product and selling it to the market It includes direct material cost like leather cost for the product of leather jacket direct labor cost like stitching of leather jacket direct expenses etc but should not be included with indirect material cost like hangar for jackets overheads See Answer

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