Product Costing

How does DBA handle Cost of Goods Sold?

With incomplete item costs in light manufacturing systems, accountants typically adjust total Cost of Goods Sold at period end by taking beginning inventory, adding inventory costs incurred during the period, then deducting ending inventory to calculate a theoretical cost of goods sold value.

By contrast, in DBA there is no need for manual adjustment to Cost of Goods Sold because each item has an accurate inventory cost that reflects absorbed labor and manufacturing overhead and provides an accurate cost of goods sold at the invoice line item level.

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