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.
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.
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Aquiles Carattino
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