Describe the difference between cost of goods and operating expenses.

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Business

Anna Jacobson

2 September, 01:22

Describe the difference between cost of goods and operating expenses.

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Demarion Heath · Answer 1

Both operating expenses and cost of goods sold (COGS) are expenditures that companies incur with running their business. However, the expenses are segregated on the income statement. Operating expenses and COGS measure different ways in which resources are spent in the process of running a company.