Cost refers to the cost of the part that is deducted from income in the period in which one operation. Costs can be divided into three categories, as follows:1. cost of goods sold (Cost of sales) means the cost of goods sold or services provided. That is, in order to sell the purchase cost of goods sold will include the purchase price and other costs that are necessary so that the item is in a ready-to-sell. In the manufacture of parts for sales cost of goods sold is the cost of production of the goods, which contain raw materials. Labor costs and overhead2. operating expenses (Operating expenses) means the expenses incurred from the sale of goods or services, and the costs incurred due to the Administration, which, as part of the operation.3. other expenses (Other expenses) means the expenses, in addition to the classified as cost of sales and operating expenses, such as interest expense, income tax.Costs for businesses selling goods to contain the cost of goods sold operating expenses and other costs. For sale business services cost includes operating expenses and other costs.
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