Social Security Depletion: Is The Fear Justified?
There are a number of reasons why concerns over Social Security depletion have emerged, but there are ways you can prepare for it.
Cost of Goods Sold
Cost of goods sold or COGS includes the cost of the production or manufacturing of goods and products for a business. This amount would include the cost of the raw materials along with all of the costs of the labor that is associated with making the products. Costs that are excluded are indirect expenses like distribution costs and costs for the sales force. You will find the cost of goods sold number on the income statement. The formula for calculating the cost of goods sold is equal to the Beginning Merchandise Inventory plus the Net Purchases of Merchandise and the subtracting the Ending Merchandise Inventory. This will give you the COGS figure. In addition, this number can be deducted from the revenue in order the company’s gross margin.
Since COGS refers to the costs that are related to the creation of the products that company makes, therefore the costs that are included are those that are directly affiliated with the making of those products. Let’s take an example. If you have a hat making business then the COGS would include all of the costs that would be associated with the making of the hats. These costs would include fabric, thread, labor, etc. The cost of shipping the hats to retailers are not included in COGS, however.
The COGS is also useful in determining other key figures. You can calculate a company’s net income by subtracting the cost of goods sold in addition with the indirect expenses from the sales revenue.
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Related Articles at Investing School:
- Cost of Sale
- What is Gross Profit?
- The Basics of Inflation
- Cash on Delivery
- 14 Facts About Form 1040 Schedule D for Investors
U.S. Dollar Holds Ground; Trading Remains Light
The U.S. Dollar finished higher on Tuesday against most major currencies in another round of light trading. Traders opened the New York session averse to risk, but shifted this sentiment a few times during the day session. The Dollar bent at times, but never broke.
Firmer U.S. equity markets triggered renewed demand for risk at the mid-session. This helped to weaken the Dollar while fueling a rally in the higher yielding Australian Dollar and New Zealand Dollar.
The Euro was down early as traders took a more cautious view of the Euro Region economy now that the fiscal problems in Greece have subsided. Traders are citing the possibility of an uneven recovery in the economy as one of the reasons for the weakness. They are worried that the European Central Bank faces too many upcoming challenges regarding growth and inflation to trigger a reasonable appreciation in the Euro.