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Cost of Sales vs. expenses: What's the difference?

Asked 4 years ago

How do you differentiate and categorize the different expenses that come with a business?

Cost of salesExpensesCost analysis

Gareth Browne

Wednesday, November 10, 2021

Expenses includes the total money you spend running the business such as taxes, shipping and electricity. Cost of Sales only shows the costs associated with the price of your goods from manufacturing to sale. Expenses is everything put together. Sales is just the sum of the product you offer.

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