Ans:
COGS administrative expenses such as salary and benefits are excluded. Nonetheless, some labour expenses might be included in COGS, provided they may be closely related to particular sales. For instance, a fee depending on the price billed to the customer, an organisation that hires technicians to come up with profits may compensate those contractors. The proportion created by the contractors is included in the company's COGS as that work expenditure is directly tied to the revenues being produced in such circumstances.