<Li> Trade discounts (reduction in the price of goods that a manufacturer or wholesaler provides to a retailer) - includes a discount that is always allowed, regardless of the time of payment . </Li> <Li> Manufacturer's rebates--is based on the dealer's purchases during the year . </Li> <Li> Cash discounts (a reduction in the invoice price that the seller provides if the dealer pays immediately or within a specified time)--it may reduce COGS, or it may be treated separately as gross income . </Li> <P> Value added tax is generally not treated as part of cost of goods sold if it may be used as an input credit or is otherwise recoverable from the taxing authority . </P>

What should be included in cost of sales