The cost of goods manufactured for the products sold. The cost of goods sold can be compared against the sales revenues.
The cost of goods sold does not contain costs for finished or semifinished products still in the inventory.
The cost of goods sold is usually calculated at the point of goods issue. In contrast to the period accounting method, the posting is made to an account "Cost of goods sold" and not to "Change in stock". This can be defined in Customizing for goods issues.