Cost Of Goods Sold

From Open Risk Manual


Cost Of Goods Sold. When calculating margin output, it is necessary to remove the cost of the goods being sold from the value of the sales. For the wholesale and retail trade industries, data are collected on purchases of merchandise for resale rather than on the cost of goods sold. Cost of goods sold is calculated as purchases less the change in inventories of merchandise for resale.[1]


  1. Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009