COST OF GOODS SOLD - COGS
Direct costs attributed to the production of the goods a firm sells. It reflects the cost of materials used in manufacturing the good and direct labor costs used in producing the good. As seen on a company’s income statement, COGS can be reduced from revenue to determine a firm’s gross margin. Also called cost of sales.
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Affirmative Covenant
A kind of contract or promise that requires a party to conduct some action. For example, a bond covenant which provides that the issuer must delive ...
Pure Risk
A risk where loss is the only potential outcome; there is no positive result. A pure risk is related to events that are out of control of the risk- ...
Efficiency
Performance level describing a process which uses the lowest amount of inputs to come up with the greatest amount of inputs. It is relative to usin ...
Tax Free
Goods and/or financial products that are not taxable. Having the tax free status allows an entity to save money and encourages additional spending ...
Reprice
A situation that is most often allowed for company executives or high-level employees. It permits them to trade in their options that out of the mo ...
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Digesting Financial Statements: Earnings
For assessing how a company performed in a given period, the relation between income and cash flow statements should be taken into account. Several ...
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A Guide to Income Tax: Overlooked Credits and Cuts
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