COGS Formula - How to calculate COGS for Infosys and Google?



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In expense recognition,for a company like infosys COGS is employee salary and for google what will be the COGS as they are service company.As there is a difference in COGS of Amazon and Google,what will be COGS of Amazon.and in income statement of IT company,employee salary is not included in operating expenses...

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For Google, COGS is bandwidth costs, computer servers etc. Since everytime you type a search query on Google they use bandwidth and servers to service your request and hence that is their COGS.

COGS of Amazon will be the cost of the products it sells. For example if Amazon buys a book for $100 and sells for $150 then $100 is the COGS.

Where did you see that salary was not included in opex for IT company?

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