To Accountants only: Does COGS include depreciation?

COGS is the purchasing price of your inventory. Depreciation is irrelevent because you don't depreciate your inventory. When you sell a product, you log the selling price as revenue, the inventory cost as COGS, and the rest as either cash or A/R depending on the payment method. For inventory, there may be shrinkage but not depreciation. Depreciation is applied to capital expenditures, such as your PP&E.