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

Markdown Pricing

A pricing strategy where retailers lower the prices of products to boost sales and manage inventory

Coupon

A document or digital code that grants the holder a discount or rebate on a purchase.