beprofit logo
ProductExpand more icon
profit calc image
Profit Simulators
Tweak your numbers to lift profits up
action card image

Demo Store

Want to see our
dashboard in action?
ResourcesExpand more icon
CompanyExpand more icon
Want to see our dashboard in action?
you can try it here with theDemo Store!

What are non-COGS?

Asked 3 years ago

What expenses are not included in COGS?

Art Barnett

Wednesday, November 10, 2021

Non-COGS are all the other costs that are not directly involved in the production of goods and services. For example, rent, utilities, managerial salaries, advertising costs, distribution costs, administrative costs, and costs involved in the day-to-day operations of the business.

Derick Terrell

Saturday, March 19, 2022

Cost of goods sold refers to all the expenditures directly associated with the production of goods. COGS analysis is crucial for a business in evaluating how efficiently a company is managing its resources. It is an essential aspect of a company's financial statement.

Non-COGs expenses are the opposite of COGs and entail utility expenses, managerial expenses (salaries/wages), advertising and marketing expenses, etc. Costs not directly involved with the goods' manufacturing process are not included in COGS.

Lane Cooper

Thursday, June 02, 2022

COGS and non-COGS are both important for your business and must be recorded separately. Failure to that your financial statements will indicate wrong information. COGS are the costs involved in producing your products or services like direct material and direct labor.

While, non-COGS are all other costs involved in the running of the business except COGS, for example, administerial expenses, selling and distribution expenses, and operating expenses.

Donald Mills

Wednesday, August 10, 2022

The following expenses are not counted in the COGS:

  • Advertisement and marketing costs
  • Administrative fees
  • Legal charges
  • Accounting fees
  • Distribution costs to customers
  • Management salaries
  • Rent expense
  • Utility bills
  • Interest expenses
  • Capital expenditures

Overall, as a general rule of thumb, all the costs that are directly not involved in the transportation and selling of the product are not included in COGS.

Write an answer...


Please follow our  Community Guidelines

Can't find what you're looking for?