Cost of Goods Sold (COGS): Formula, Calculation, and What It Includes
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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.
- Cost of AttendanceThe total estimated cost of attending a college for one year, including tuition and fees, room and board, books and supplies, transportation, and personal expenses. Colleges use the cost of attendance to determine your financial need by subtracting your Expected Family Contribution. Understanding the full cost of attendance helps you compare colleges more accurately beyond just their listed tuition prices.
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