Direct cost: related pages
Cost of goods sold (COGS)
The accrued cost of the goods (or services) supplied in a period; the difference between sales and gross profit.
Stock (inventory)
Current assets held for sale, or for processing and subsequent re-sale.
Net realisable value
Net realisable value can be used used to calculate the value of assets when cost of purchase cannot be used
WIP
The part of stocks (inventory) that has had some work done on it, but which has not yet been made into goods ready for sale.
Fixed costs
Costs that do not change with the level of sales.
Operational gearing
Operational gearing is the effect of fixed costs on the relationship between sales and operating profits.
Copyright Graeme Pietersz © 2005-2019
