What Is Cost Of Sale And Why....

Titodbuilder

....is it not part of or included in overhead? What percentage do some of you use as cost of sales?

DavidC

Any expense that can be directly affixed to a particualr job is a job expense, all other costs are overhead. Included in your overhead is marketing, which should include any "cost of sale" that you can't directly link to the job.

Buying an ad is marketing. Paying a sales commission is a job expense.

We don't use a % cost of sales. We do add a % for OH, which includes marketing expense. That is based as best as possible on historical figures and experience.

Good Luck
Dave

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Titodbuilder

I am what COGS is in other businesses I just wanted to get perspective on it in the construction industry, can someone explain?

rbsremodeling

Buy Michael Stones markup and profit book
Buy quic kbooks for contractors

They really explain it very well. good books to go back to when you need answers as you grow

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