1. What Is CMV (Custo De Mercadoria Vendida)?

CMV (Custo de Mercadoria Vendida) or Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company. This amount includes the cost of materials and direct labor used to create the product.

2. How Does The CMV Calculation Work?

The calculator uses the CMV formula:

Where:

• \( Estoque\ Inicial \) — Initial inventory value at the beginning of the period
• \( Compras \) — Purchases made during the period
• \( Estoque\ Final \) — Ending inventory value at the end of the period

Explanation: This formula calculates the actual cost of merchandise that was sold during a specific accounting period by accounting for inventory changes.

3. Importance Of CMV Calculation

Details: Accurate CMV calculation is essential for determining gross profit, analyzing business performance, preparing financial statements, and making informed pricing decisions.

4. Using The Calculator

Tips: Enter all values in dollars. Ensure you have accurate inventory counts and purchase records for the period you're analyzing.

5. Frequently Asked Questions (FAQ)

Q1: What's included in "Compras" (Purchases)?
A: This includes all merchandise purchased for resale during the accounting period, including freight-in costs but excluding purchase returns and allowances.

Q2: How often should CMV be calculated?
A: CMV should be calculated at the end of each accounting period (monthly, quarterly, or annually) depending on your business needs and reporting requirements.

Q3: What's the difference between CMV and operating expenses?
A: CMV represents the direct cost of products sold, while operating expenses include indirect costs like rent, utilities, salaries, and marketing expenses.

Q4: How does CMV affect gross profit?
A: Gross profit is calculated as Net Sales minus CMV. A lower CMV results in higher gross profit, assuming sales remain constant.

Q5: What inventory valuation methods can affect CMV?
A: FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost methods can result in different CMV values depending on inventory cost fluctuations.