Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education ...

What Does The Term Cost Of Goods Sold (COGS) Mean? Cost of Goods Sold (COGS), often referred to as cost of sales or cost of revenue, is an accounting term that represents the direct costs incurred by ...

A common figure in financial statements is the cost-of-goods sold; the COGS ratio is removed from a company's profits when calculating gross profit, which is a measure of profitability that assesses a ...

There are two main categories of expenses that a business can incur: overhead and operating expenses. Operating expenses are those that a business incurs as a result of its normal operations. These ...

Operating expenses are essential for day-to-day business functions, like customer service. Capex refers to long-term investment costs, contrasting with yearly-deducted operating costs. Evaluating a ...

Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...