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

Category Manager

The person is responsible for overseeing a specific category of products of a brand. They develop

Excess Inventory

Also referred to as surplus inventory, denotes the surplus stock held by a company beyond what

Just in time inventory

An inventory management that is focused on optimizing inventory levels by receiving raw materials and components