Cost of business cost cost reflects the cost of materials and labor corresponding to the consumption of the enterprise's revenue for the period. From one point of view, the method of accounting for costs is divided into the field inventory system and the perpetual inventory system depending on the method of inventory.

If it is a catering enterprise, it generally adopts the backward squeezing method to account for direct costs, i.e., the field inventory system:

The raw materials at the beginning of the period are 10

This period's consumption of raw materials is 50

The ending inventory is 20

The consumption of raw materials for this period, both raw materials portion of the current period's cost is 10+50-20=40

If it is any other manufacturing industries, the perpetual inventory system is generally used.

Cost of goods sold = Quantity issued x unit price issued. Issued unit price involves the issue of valuation, unit price accounting commonly used: FIFO, weighted average, individual determination.