Does COGS include things that you use to deliver your product, or are they their own line item under expenses?
2006-06-10 08:40:19 · 4 answers · asked by csgillis 1 in Business & Finance ➔ Other - Business & Finance
No, they would not be part of COGS.
Shipping fees to get the product to you are part of product cost. Shipping fees to get the product to a customer are not.
2006-06-10 08:43:37 · answer #1 · answered by just_the_facts_ma'am 6 · 1⤊ 0⤋
On a practical basis, COGS could include shipping if it is not material (i.e., not large in relation to the actual cost of the items sold) but most people would show it as a separate line item to be able to analyze it better.
Paypal expenses would not normally be included in COGS, they are a form of marketing or financing.
2006-06-10 15:48:25 · answer #2 · answered by Jimbo Ketan 2 · 0⤊ 0⤋
I am going to hazard a guess that COGS stands for "Cost of Getting Started". If that is the case, then the answer is yes.
Just to be sure, I would type in business expenses in the Search section of Yahoo! and do some research or check at your local library under accounting. Pick a book and look up business expenses.
2006-06-10 17:16:25 · answer #3 · answered by grock35 1 · 1⤊ 0⤋
No. COGS consists only the cost of buying the product. fees and shipping costs are both other expenses.
also, shipping has its own line. logically, the paypal fees should probably show up as services.
2006-06-10 15:44:08 · answer #4 · answered by weirina85 3 · 0⤊ 0⤋