Costs accrued during the production process of whatevers that are not tied to a product or service...need to be included in cost of goods sold for accounting purposes. In this sense, accountants are applying the overhead "ratably" on a unit-by-unit basis.
So, for example, the annual charge of $10M to rent the rubber extruding whoopee cushion blower has to be ratably expensed against the 5M whoopee cushions being produced that year. In this sense, the applied overhead then adds $2 per cushion. Which is, uh...more for the pushin'.
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Finance: What is COGS (Cost Of Goods Sol...40 Views
Finance allah shmoop What is a cog sze or cost
of goods sold So yeah what are cogsa Yeah and
they're not the shoes your mom bought a penny on
saturday and it's not what the plumber had to remove
from your toilet consisting of hair clumps toenails and discarded
q tips Yeah that's clogs and we're talking cogsa Cost
of goods sold and note that there is no cobb's
which would be a cost of bads sold when you
have a business Selling things is pretty much always a
good well cog czar All the expenses the company needs
to pay to get their products out the door So
the company that makes your shoes might have to pay
for material to make those shoes the process of making
them the price tags and boxes for the shoes and
you know shipping delivery and everything else that it takes
to get the shoes to the store or no to
your doorstep Those costs all together are the cog sze
of your uh adidas or nikes or the cog sze 00:01:01.705 --> [endTime] of your clogs
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