Definition, Meaning & Synonyms
cost-of-goods-available-for-sale
Noun
kɔst əv ɡʊdz əˈveɪləbəl fɔr seɪl
Definition
The cost of goods available for sale refers to the total cost incurred to acquire products that are ready to be sold during a specific period.
Examples
- The cost of goods available for sale increased this quarter due to higher raw material prices.
- To calculate gross profit, subtract the cost of goods available for sale from total sales revenue.
- Investors should pay attention to the cost of goods available for sale when assessing a company’s financial health.
Meaning
It includes all expenses related to the purchase of inventory, such as production costs, shipping, and storage.
Synonyms
- Cost of sales
- Inventory costs
- Acquisition costs
