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

Loyalty program

A initiative by a company to incentivize repeat purchases and customer loyalty by offering rewards, discounts,

Advertising Allowance

Also referred to as marketing co-op allowance or promotional allowance, it is the dollar amount that

Incremental Sales

Refers to the additional units of a product sold to retailers or consumers directly attributed to