The cost of goods sold is:

The cost of goods sold (COGS) refers to the direct expenses incurred in producing or purchasing the goods sold by a company. It includes costs like materials, labor, and overhead directly associated with production but excludes administrative and selling expenses. COGS is classified as an expense on the income statement and is subtracted from revenue to determine gross profit.

ASIS Certified Protection Professional (CPP®) References:

Financial Management for Security Professionals: CPP guidelines discuss financial terms like COGS to evaluate organizational budgets and expenses.

Budgeting and Cost Analysis: Understanding COGS is vital for accurate financial assessments in CPP financial planning modules.