Business

Cost of Goods Sold (COGS)

Direct costs of producing goods sold by a company, including materials and labor. COGS is subtracted from revenue to calculate gross profit.

Related Terms

Gross Margin
Inventory
Revenue

Related Calculators

Profit Margin Calculator
Markup Calculator

Understanding Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) is a key concept in business. Understanding this term helps you make more informed financial decisions. Use our related calculators above to see how cost of goods sold (cogs) affects your specific situation.