Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS)

Also referred to as cost per unit or cost of sales, it involves the direct expenses a company incurs in manufacturing or purchasing the products it sells, including material and labor costs.

It excludes indirect costs related to selling and distribution expenses.

Related Terms

Advertising Allowance

Also referred to as marketing co-op allowance or promotional allowance, it is the dollar amount that