Difference between COGS and Operating Expenses?



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what is the difference between COGS and Operating Expenses?

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For example if you run a business that sells textbooks. You buy a textbook for Rs.70 and sell it for Rs.100. The Rs.70 which is the cost of the book itself is the COGS. Now apart from the cost of the book you will have other overheads like Salary, rent etc - those are termed as operating expenses.

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