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

CPG manufacturing

In the Consumer Packaged Goods industry, the term “CPG company” typically denotes manufacturers within the sector.

Brand Loyalty

Refers to a consumer’s consistent preference for purchasing the same brand over competing ones, driven by