What Is The Difference Between Cost Of Goods Sold And Operating Expen

1.	What Is The Difference Between Cost Of Goods Sold And Operating Expenses?
Answer» Cost of goods sold are DIRECTLY ATTRIBUTED to a SALE, they only exist because the sale exists, such as the cost of inventory sold, sub-contractor expense. A total sale minus cogs is used to CALCULATE gross margin or gross profit. Operating expenses usually are not directly correlated to a sale and are fixed, such as rent and UTILITIES. Cost of goods sold are directly attributed to a sale, they only exist because the sale exists, such as the cost of inventory sold, sub-contractor expense. A total sale minus cogs is used to calculate gross margin or gross profit. Operating expenses usually are not directly correlated to a sale and are fixed, such as rent and utilities.

What Is The Difference Between Cost Of Goods Sold And Operating Expenses?

Answer»

Cost of goods sold are DIRECTLY ATTRIBUTED to a SALE, they only exist because the sale exists, such as the cost of inventory sold, sub-contractor expense. A total sale minus cogs is used to CALCULATE gross margin or gross profit.

Operating expenses usually are not directly correlated to a sale and are fixed, such as rent and UTILITIES.

Cost of goods sold are directly attributed to a sale, they only exist because the sale exists, such as the cost of inventory sold, sub-contractor expense. A total sale minus cogs is used to calculate gross margin or gross profit.

Operating expenses usually are not directly correlated to a sale and are fixed, such as rent and utilities.

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