There are many things involved when you want to run a commercial business in serious method. If you run a manufacturer company, some elements will determine the earned profits. One of them is the Cost of Goods Sold. Although you do not run the business yourself, this part of accounting is also a familiar thing if you work as an accountant.
To estimate how much the cost of goods sold within a period, you can simply use CoGS Calculator. If you are an accountant, it will be easy for you to make manual calculation. You have known what things involved. It is started from the cost spent for material purchasing, production, and selling. There are also three common flows used on this CoGS calculation. They are FIFO, LIFO and average. Each of them has its own pros and cons. The most recommended one is FIFO. It is the short form of First In First Out which means that previously bought things are sold before the others. Even it is recommended, a business owner needs to use the more flexible cost flow according to some considerations. It is also just fine for you to use CoGS Calculator to fasten the work.
This kind of tool is very effective for some businesses including the retail one. The goods move quickly and it also requires for the same quick way to count this CoGS. The inventory management can be a time wasting thing to do manually. Therefore, CoGS Calculator is needed for effective and efficient counting work. Learn the steps to use it to avoid incorrect calculation.
CoGS Calculator Template (28.0 KiB, 534 hits)