Cost of Goods Sold

The Cost of Goods Sold manual will help brewing organizations think about the costs and systems they have in place and enable them to make decisions about how to account for them.

Accounting for COGS requires judgment and flexibility. This manual is not intended to make every set of brewery financial statements look identical; rather, it is a tool to help readers develop a more consistent classification of costs. More consistent classification across the industry enables valuable benchmarking and better decision making data.

Cost of Goods Sold

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The manual introduces common accounting terms and methods to brewery and brewpub operators for the accounting of cost of goods sold (COGS) in accordance with generally accepted accounting principles (GAAP) and provides a common framework for non-technical and technical accountants as well as owners, brewers, and managers to use in developing internal costing systems.

The COGS manual starts with basic concepts and systems and progressively addresses more technical concepts and complex systems. It is intended to educate all breweries, from a newly started taproom brewery or brewpub to a larger, more established brewery. Given this broad scope, the manual will not address every circumstance. At the same time, it will provide a basic understanding of GAAP, allowing readers to apply the concepts to new items within their financial statements.