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For an online advertising company, would cost of goods sold include the online production teams' salaries?

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On the income statement for an internet company, would you include an online production worker's(who places banner ads online for advertisers) salary as part of the Cost of Goods Sold (COGS), or not? I know that a company that manufactures goods includes the assembly line labor costs as part of COGS, but would it apply in this case?

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  1. I would - but different businesses might treat it differently.  Typically if the worker is paid on the work done (piecework) or by the hour it is definitely in the COGS.  The line blurs a bit on salaried employees.  I think the job responsibility you describe is a production floor type of job - except it's not a physical production floor.  So my answer is still yes, I'd include it.    

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