Cogs
Costs of goods sold
It refers to how much it costs to produce the product a company sells. It includes materials and labor, but excludes sales and marketing, for example. (It also excludes distribution). It is very closely related to the bill of materials, adding the labor costs. It also takes into account external services required to produce the product.
Getting the COGS right is fundamental when determining the gross margins or net margins of a product, and it can make or break a company.
Backlinks
These are the other notes that link to this one.
Comment
Share your thoughts on this note. Comments are not public, they are
messages sent directly to my inbox.
Aquiles Carattino
This note you are reading is part
of my digital garden. Follow the
links to learn more, and remember that these notes evolve over time. After all,
this website is not a
blog.