Cost of Goods Sold (COGS): Computation, Formula, and What It Reveals About a Business
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Key terms
- Dollar-Cost AveragingAn investment strategy where you invest a fixed amount regularly, regardless of market conditions. Reduces the impact of market volatility by buying more shares when prices are low.
- Opportunity CostThe value of the next best alternative foregone when making a decision. For example, money spent on a vacation could have been invested to earn returns.
- Cost BasisThe original purchase price of an asset, used to calculate capital gains or losses for tax purposes. Adjusted for stock splits, dividends, and return of capital.
- Business Credit CardA card designed for business expenses with higher credit limits, employee cards, and expense tracking. Builds business credit separately from personal credit in some cases.
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