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This depends on the service being provided, but in general is pretty much the same. For example let us use a Painter who is painting your house.

The cost of supplies (i.e. paint, brushes, etc) are calculated at cost to the contractor and is the "expense" of doing the service.

Also calculating the cost of employee's (in many cases) is an expense and is calculating in the cost of services sold.

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11y ago
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Q: How do you calculate cost of services sold?
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