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

Baseline Sales

Amount of organic sales for a product in a marketplace without any marketing effort.

Blocking

Also called facing, zoning or fronting, a retail merchandizing concept where all products of the same

Velocity Analysis

A method of analyzing sales data to identify products with high sales velocity. Velocity analysis helps