In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

If you own your own business or are responsible for running someone else's company, you'll have to separate your production costs into various categories before you can analyze how well your business ...

Direct costs -- such as labor and parts -- are those linked to the provision of services or the manufacturing of goods. Look for these costs in the "cost of goods sold" section of a statement of ...

Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies. Investopedia / Paige ...

Explicit costs are direct, out-of-pocket expenses that a company incurs during its operations. These costs are easily identifiable and measurable, typically involving monetary transactions. Explicit ...

COGS is found between revenue and gross profit on income statements. Investors calculate COGS by summing direct costs of sold products or services. Understanding COGS helps assess a company's ...