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

Merchandising

It includes the comprehensive strategies and practices retailers employ to promote and sell products to customers

Club

Also called a warehouse club, it is a membership-based retail outlet offering a wide selection of