How do you separate the cost of goods sold and expenses related to?
Under GAAP expenses related to providing a good or service to a client is recorded as cost of goods sold" on the income statement. The amount recognized is limited by the matching principle - i.e. such expenses are recognized at the same time as the related revenues. Any expenses not related to providing a good or service to a customer are recognized in another financial statement caption (e.g. General/Admin expense or Other expense).