Cost of Goods Sold vs Expenses
Cost of Goods Sold are those costs that are directly associated with the production of a good or goods, or with direct service that leads to a sale. Expenses are all the other costs that are not COGS. See list of COGS and Expenses below:
Cost of Goods Sold Accounts
- Blueprints and Reproduction: Blueprints, photostats, and other printing expense
- Bond Expense: Construction bonds expenses directly related to jobs
- Construction Materials Costs: Construction materials costs
- Contracted Services: Direct labor costs for contract (non-employees) performing services for clients
- Equipment Rental for Jobs: Rent paid for rented equipment used on jobs
- Freight and Shipping Costs: Freight-in and shipping costs for delivery to customers
- Freight Costs: Costs of freight and delivery for merchandise purchased
- Job Materials Purchased: Construction materials used on jobs
- Linens and Lodging Supplies: Costs of linens and other supplies for guest rooms
- Materials Costs: Cost of materials used on jobs
- Media Purchased for Clients: Print, TV, radio, and other media purchased for clients
- Merchant Account Fees: Credit card merchant account discount fees, transaction fees, and related costs
- Other Construction Costs: Other costs directly related to jobs such as waste disposal, onsite storage rental, etc.
- Other Job Related Costs: Other costs directly related to jobs such as waste disposal, onsite storage rental, etc.
- Parts Purchases: Purchases of parts for use on customer repairs or resale
- Purchases – Hardware for Resale: Purchases of hardware items for resale that are not tracked or counted in inventory
- Purchases – Resale Items: Purchases of items for resale that are not tracked or counted in inventory
- Purchases – Software for Resale: Purchases of software items for resale that are not tracked or counted in inventory
- Subcontracted Services: Subcontracted services for customer service orders
- Subcontractors Expense: Subcontracted services performed by other contractors
- Tools and Small Equipment: Purchases of tools or small equipment used on jobs
- Worker’s Compensation Insurance: Worker’s compensation insurance premiums
Expense Accounts
- Advertising and Promotion: Advertising, marketing, graphic design, and other promotional expenses
- Auto and Truck Expenses: Fuel, oil, repairs, and other maintenance for business autos and trucks
- Automobile Expense: Fuel, oil, repairs, and other automobile maintenance for business autos
- Bank Service Charges: Bank account service fees, bad check charges and other bank fees
- Business Licenses and Permits: Business licenses, permits, and other business-related fees
- Car and Truck Expenses: Fuel, oil, repairs, and other car and truck maintenance
- Chemicals Purchased: Costs of chemicals used in farming operations
- Computer and Internet Expenses: Computer supplies, off-the-shelf software, online fees, and other computer or internet related expenses
- Continuing Education: Seminars, educational expenses and employee development, not including travel
- Depreciation Expense: Depreciation on equipment, buildings and improvementsDues and Subscriptions: Subscriptions and membership dues for civic, service, professional, trade organizations
- Equipment Rental: Rent paid for rented equipment used for business
- Fertilizers and Lime: Fertilizers and lime purchased for farm operations
- Freight and Trucking: Amounts paid for freight or trucking of farm products
- Gasoline, Fuel and Oil: Gasoline, fuel or oil used for farm machinery
- Insurance Expense: Insurance expenses
- Insurance Expense: General Liability Insurance: General liability insurance premiums
- Insurance Expense: Life and Disability Insurance: Employee life and disability insurance premiums
- Insurance Expense: Professional Liability: Professional liability (errors and omissions) insurance
- Insurance Expense: Workers Compensation: Worker’s compensation insurance premiums
- Interest Expense: Interest payments on business loans, credit card balances, or other business debt
- Janitorial Expense: Janitorial expenses and cleaning supplies
- Landscaping and Groundskeeping: Landscape maintenance, gardening, and pool maintenance costs
- Marketing Expense: Advertising, marketing, graphic design, and other promotional expenses for our company
- Meals and Entertainment: Business meals and entertainment expenses, including travel-related meals (may have limited deductibility)
- Office Supplies: Office supplies expense
- Payroll Expenses: Payroll expenses
- Postage and Delivery: Postage, courier, and pickup and delivery services
- Printing and Reproduction: Printing, copies, and other reproduction expenses
- Professional Fees: Payments to attorneys and other professionals for services rendered
- Rent Expense: Rent paid for company offices or other structures used in the business
- Repairs and Maintenance: Incidental repairs and maintenance of business assets that do not add to the value or prolong its life
- Research Services: Research costs including legal library and subscriptions for research services
- Salon Supplies, Linens, Laundry: Costs of supplies used in the course of business (includes linens and laundry services)
- Seeds and Plants Purchased: Seeds and plants purchased for producing farm income
- Shop Expense: Miscellaneous shop supplies and related shop expenses (rags, hand cleaning supplies, etc.)
- Small Tools and Equipment: Purchases of small tools or equipment not classified as fixed assets
- Storage and Warehousing: Amounts paid to store farm commodities
- Taxes – Property: Taxes paid on property owned by the business, franchise taxes, excise taxes, etc.
- Telephone Expense: Telephone and long distance charges, faxing, and other fees Not equipment purchases
- Travel Expense: Business-related travel expenses including airline tickets, taxi fares, hotel and other travel expenses
Uniforms: Uniforms for employees and contractors - Utilities: Water, electricity, garbage, and other basic utilities expenses
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