What are Cost of Sales?

By Chris Andreou
|
Last updated
September 16, 2023

Contents

What are Cost of Sales? guide

The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold. The cost of sales is a key part of the performance metrics of a company, since it measures the ability of an entity to design, source, and manufacture goods at a reasonable cost.

<p>The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold. The cost of sales is a key part of the performance metrics of a company, since it measures the ability of an entity to design, source, and manufacture goods at a reasonable cost.</p>

Read more of our Small Business Accounting guides:

Business accountant available for free consultation

Speak to an accountant

Get a free 20 minute consultation about starting your business

Business accounting from £35