COGS & COGM why will there be difference ?

[Former Member]

Hi Guru,

COGS & COGM why will there be difference ?

and how to reconcile the same.

warm regards

Manjunath

[Former Member]

COGM includes all expenses incurred in manufacturing the product. whereas COGS includes all expenses incurred in manufacturing (COGM) plus the sales and distribution related expenses.

you add sales and distribution related expenses to COGM to get the COGS. this way you can reconcile both.

Thanks n regards,

Ganesh JK