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

Incremental Sales

Refers to the additional units of a product sold to retailers or consumers directly attributed to

High-Low Pricing

A strategy where a company sets an initial high price for a product and later reduces