A cost measure that represents the direct costs of the services provided by a business. For a service company, the cost of services rendered consists of all the direct costs of the services provided by the company, excluding all indirect costs incurred in relation to the services.

In accounting parlance, cost of services is the carrying value of services rendered during a certain period. These represent the costs associated with particular services using one of the several accounting methods. This cost is reported on an entity’s statement of income and is treated as an expense of the accounting period for which financials are prepared.