Software As A Service Cost Of Goods Sold. 330000 950000 440000 840000 cost of goods sold. While COGS is a seemingly straight-forward accounting principle it is frequently miscalculated by many software company operators.
With Patriots online accounting you can easily record income and expenses anytime. This means that the Cost of Goods Sold should be around 10-20 of the total Revenue. Accounting rules are very specific on some things and surprisingly unhelpful in other areas.
Therefore the items that comprise the COGS for this business model are different from those found in the COGS of traditional Software businesses.
Cost of goods sold is the accumulated total of all costs used to create a product or service which has been sold. For example if youre selling a chair you would add the materials to manufacture the chair packaging and delivery costs to. These costs can include labor material and shipping. Cost of Goods Sold COGS can also be referred to as cost of sales COS cost of revenue or product cost depending on if it is a product or service.
