What's it: Cost of goods manufactured refers to the collection of production cost plus the change in work-in-process inventory. These production costs (or manufacturing costs) consist of direct material costs, direct labor, and factory overhead
Income Statement
Income Statement: Formula, Components, and Importance
What's it: An income statement tells you the company's financial performance during a specific period, quarterly or annually. It shows you three basic elements, namely, revenue, expenses, and profit. Other names for the income statement
Cost of goods sold (COGS): Why It Matters, How to Calculate It
Cost of goods sold (COGS) is all costs the company incurred in producing goods and providing services. It consists of labor costs, raw materials, overhead, finished goods inventory costs.COGS covers most of the company's expenses. The value is
Selling, general and administrative expenses (SG&A expenses)
Selling, general, and administrative expenses are operating expenses unrelated to the production of goods or services provided. Examples are executive salaries, salaries of non-production staff, insurance, advertising and promotions, and travel and
Net Revenue: Why It Matters, How To Calculate It
Net revenue is gross revenue after adjusted for deductions. When selling a product, your company records it as gross revenue. To get it, you need to reduce it by factors such as:Discounts, i.e., the value or percentage of the deduction on the
Gross Revenue: Why It Matters, How To Calculate It
Gross revenue is the sum of all sales of goods and services. That is the total invoice value for the goods and services you send to customers. You can calculate it by multiplying the units sold by the selling price per unit.If you reduce it with
Expense: Meaning, How It Reported in The Financial Statements
Expense is the cost of providing goods and services. In accounting, it represents an outflow of resources from a company during an accounting period. That includes purchasing raw materials, paying rent, wage labor, depreciation, and marketing and
Revenue: Types, How To Calculate and Report It
Revenue is money earned by an organization. Businesses get it by selling products. The government receives it through tax collection. That's why I don't use the word "product sales" because, in the case of the government, they don't sell