AVCO stands for Average Cost Method, an inventory valuation method applied to calculate the cost of goods sold and end inventory by averaging the cost of all items available for sale during the period.
The value and quantities of stock in trade at the end of an accounting period, used in determining the cost of goods sold during that period.
An essential metric in accounting, Cost of Goods Sold (COGS) represents the direct costs associated with the production of goods sold by a company. This value is critical in determining the business's gross profit and provides insights into the efficiency and cost management of production processes.
Cost of Goods Sold (COGS) represents the direct costs attributed to the production of goods sold by a company. COGS include the cost of materials, direct labor, and manufacturing overhead.
A key financial metric representing the direct costs to an organization of supplying goods or services, used to calculate gross profit by deducting this figure from sales revenue.
Cost of Sales Adjustment (COSA) refers to modifications made to the cost of goods sold (COGS) to reflect changes in inventory levels, obsolescence, shrinkage, or other factors that may affect the reported cost of sales.
Direct overhead refers to the portion of overhead costs allocated to manufacturing through a standard application of burden rate, impacting inventory costs and ultimately reflected in the cost of goods sold.
Ending Inventory refers to the stock held by a business at the end of a financial period. It plays a crucial role in calculating the Cost of Goods Sold (COGS) on the Profit and Loss statement, as well as appearing on the Balance Sheet.
FIFO Cost, short for First-In-First-Out Cost, is an inventory valuation method where the costs of the earliest items purchased are the first to be recognized in financial statements. This method is widely used in accounting to manage inventory and calculate the cost of goods sold.
The gross margin ratio, also known as the gross profit percentage, is a financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS). It is a critical indicator of a company's financial health and its ability to manage production costs.
Gross Profit Margin is a financial metric used to assess a company's financial health and its efficiency in generating profit from revenue. It represents the percentage of revenue that exceeds the cost of goods sold (COGS).
An accounting process used to determine the cost of inventory sold or put into production. Data on beginning inventory, purchases, and ending inventory are used to find the amount and cost of withdrawals from inventory.
Stock turnover, also known as inventory turnover, is a financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.
Uniform Capitalization Rules (UNICAP) are a method of valuing inventory for tax purposes, requiring the capitalization of direct costs and an allocable portion of indirect costs related to production or resale activities. These costs must be included in the basis of property produced or in inventory costs and are then recoverable through depreciation, amortization, or as cost of goods sold.
A method of valuing inventory that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.
