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

Unplanned Out-of-Stocks

Instances where a product is unexpectedly unavailable for purchase, often resulting in lost sales and dissatisfied

Incremental Revenue

Represents the additional profit generated by a business as a result of increased sales volume. It