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Purchases Account
A ledger account used to record the amounts spent on acquiring inventory for resale or raw materials for production, excluding any direct labor or overhead costs.
Cost Of Goods Purchased
The cost of goods purchased is the total expense a company incurs to buy the goods that it sells to customers, excluding costs associated with production or manufacturing.
Gross Profit Rate
A financial metric that indicates the percentage of revenue that exceeds the cost of goods sold.
Cost Of Goods Sold
Expenses explicitly tied to the production of a company's sold goods, comprising costs of materials and labor.
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