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Cost of Goods Sold Supply Chain Costs 41100 2 {{{keywords}}} {{{description}}}
CO11
Cost of Goods Sold
Cost of Goods Sold measures the expense a company incurred in order to acquire, manufacture or create a sellable product. It includes the purchase price of the raw materials as well as the expenses of turning it into a sellable product.
Calculations
| Cost of Goods Sold | |
| = | Direct Materials |
| + | Direct Labor |
| + | Overhead |
where
- Direct Materials = Total annual cost of materials to generate the revenue
- Direct Labor = Total annual personnel cost to generate the revenue
- Overhead = Total annual manufacturing (Source + Make) overhead cost
Unit of Measure: Currency
Cost of Goods Sold Ratio compares cost of goods sold to total sales revenue for benchmarking purposes.
| Cost of Goods Sold Ratio | ||||
| = |
| |||
where
- Revenue = Total annual revenue from sales of products and services
Unit of measure: %
Importance
A lower number of days indicate better control of the costs to source and make sellable products/services.
Alternative names include: Cost of Revenue and Cost of Sales. Statement of Comprehensive Income
Community Importance Rating: Hierarchy
| ID | Name | Level | x |
|---|---|---|---|
| CO1 | Supply Chain Costs | 1 | CO1 |
| CO11 | Cost of Goods Sold | 2 | CO11 |
| CO111 | Direct Material Costs | 3 | CO111 |
| CO112 | Direct Labor Costs | 3 | CO112 |
Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| P1 | Plan Supply Chain Operations | 2 | P1 |
| P2 | Plan Source | 2 | P2 |
| P203 | Calculate Sourcing Plan | 3 | P203 |
| P3 | Plan Make | 2 | P3 |
| P303 | Calculate Production Plan | 3 | P303 |
| S006 | Negotiate | 3 | S006 |
| S1 | Source-to-Replenish | 2 | S1 |
| S102 | Receive | 3 | S102 |
| S10201 | Schedule Appointment | 4 | S10201 |
| S10202 | Check-In | 4 | S10202 |
| S10203 | Queue Activities | 4 | S10203 |
| S10204 | Inspect Vehicle | 4 | S10204 |
| S10205 | Weigh-In | 4 | S10205 |
| S103 | Unload | 3 | S103 |
| S104 | Inspect | 3 | S104 |
| S2 | Source-to-Order | 2 | S2 |
| S201 | Create Order | 3 | S201 |
| S203 | Receive | 3 | S203 |
| S204 | Unload | 3 | S204 |
| S205 | Inspect | 3 | S205 |
| S3 | Source-to-Engineering-Order | 2 | S3 |
| S302 | Negotiate & Award | 3 | S302 |
| S303 | Create Order | 3 | S303 |
| S304 | Receive | 3 | S304 |
| S305 | Unload | 3 | S305 |
| S306 | Inspect | 3 | S306 |
| M1 | Make-to-Stock | 2 | M1 |
| M2 | Make-to-Order | 2 | M2 |
| M204 | Produce | 3 | M204 |
| M3 | Make-To-Engineering-Order | 2 | M3 |
| M302 | Complete Order Engineering | 3 | M302 |
| M305 | Produce | 3 | M305 |
| M309 | Transfer | 3 | M309 |
| M4 | Re-Make | 2 | M4 |
| M401 | Create Work Order | 3 | M401 |
| M402 | Schedule Work Orders | 3 | M402 |
| M405 | Issue Material | 3 | M405 |
| M410 | Transfer | 3 | M410 |
| D203 | Route & Schedule Order | 3 | D203 |
| D304 | Schedule Project Resources | 3 | D304 |
Term(s)
| ID | Name | Clear | x |
|---|---|---|---|
| EPS | Earnings per Share | EPS | |
| IFRS | International Financial Reporting Standards | IFRS | |
| CSCI | Statement of Comprehensive Income | CSCI | |
| SCF | Supply Chain Finance | SCF |