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

Yield Management

A pricing strategy used to maximize revenue by varying prices based on demand and inventory levels.

Base Price

Also referred to as non-promoted price, it is the average price of an item across all

Incremental Revenue

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