What is the connection between the cost of sale and the costs of the goods sold?

Sale costs and goods sold are two different conditions for the same concept. The connection between them is the fact that they both refer to the costs increasing during production for the product or marketing of goods of companies. Two factors that determine the total cost of goods include whether the goods produced by the company and whether the company was purchased by the company for further sale.

If the goods are produced by companies, the problems that will be considered in the analysis of the cost of sale and the costs of the goods sold, involving money spent on the purchase of raw materials used to produce the final product. Businesses usually maintain reserves and record such expenses to deduct the costs of goods sold from the calculation of taxable income. Expenditure on the transport of raw materials to the production plant is also a factor considered during the analysis of the costs of the goods sold.

Another factor that will be included in the list of expenditure for companies that produce their own products are PenEasons spent on work-pre-production after the final phase of production. For example, a company that produces orange juice may include money spent on the work needed to harvest orange, loading them on trucks, transport to the factory, and operate the equipment needed to produce orange juice. All these factors are considered to be expenses aimed at producing the final product and are deducted from income derived from the sale of the product. As such, all costs associated with the production of orange juice will be deducted from the reception obtained by the sale of juice.

In the case of final products purchased for further sales, the problem is considered during the transport process from the manufacturer to the seller and all the money spent for repair or renovation of the goods. For example, a company that sells used furniture may include money spent to buy furniture from different sources, money spent on the transport of purchased items and money spent on the reconstruction of old furniture to make youThey fell better. Another factor that may be included is any other materials purchased and used to repair the goods. For example, a person who sells used furniture can buy material to change the cover on the old couch.