COS stands for which term?

COS stands for which term?

• A. Cost of sales
• B. Cost of service
• C. Cost of stock
• D. Cost of security

Answer: (A)

COS stands for Cost of Sales, the direct cost tied to the goods a business sells in the period. This includes the cost of purchases and any production costs allocated to those goods, adjusted for stock movements (opening stock plus purchases minus closing stock, plus any production costs). It’s the amount you subtract from revenue to get gross profit (gross profit = sales revenue minus cost of sales). In many contexts this is the same as cost of goods sold (COGS). The other options don’t reflect the standard term used for COS.

COS stands for Cost of Sales, the direct cost tied to the goods a business sells in the period. This includes the cost of purchases and any production costs allocated to those goods, adjusted for stock movements (opening stock plus purchases minus closing stock, plus any production costs). It’s the amount you subtract from revenue to get gross profit (gross profit = sales revenue minus cost of sales). In many contexts this is the same as cost of goods sold (COGS). The other options don’t reflect the standard term used for COS.