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Cost of Goods Sold

SharleneSharlene Member Posts: 4

Hi, I have a friend who is a teacher and has started her own Montessori Homeschool Business and my question is, is Class Materials classed as Cost of Goods sold?

in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    @Sharlene,
    Technically no. Cost of goods sold refers to the costs associated with producing an item held for sale in the regular course of business. Since this is a service business there would not be a cost of goods sold.

  • SharleneSharlene Member Posts: 4

    Thank you Mike :-)

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