![]() Remember, these expenses do not include indirect labor, such as sales teams and administrative salaries, or overheads for corporate offices, for instance. For manufacturing and production facilities only, specific overheads like rent and utilities can also be factored into COGS. Other expenses: What expenses in the business are related to products/services? This should include incoming material shipping costs.Materials: What has the company spent on materials and supplies to make the products that have been sold during the financial period?.Labor: How much has the company spent on direct wages while producing its products or providing its services?.To get a more detailed view of expenses, many financial professionals will break them down into three subcategories: ![]()
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