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

Prestige Pricing

A pricing strategy where products are priced at a premium to signal superior quality and status,

Market Basket Analysis

A data mining tool used to identify patterns of items frequently purchased together by analyzing transaction