12/22/2023 0 Comments Cogs vs expensesIf the answer is yes, as it would be for the insurance on our widget-vendor’s truck, then they’re most likely an indirect operating expense. If the answer is no, as it would be for the purchase cost of our vendor’s widgets, then they probably fall into the direct, or COGS category. One way to figure out which is which when it comes direct and indirect expenditures is to ask whether they would still be considered an expense even if a sale had not occurred.
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