Cost of Goods Sold (COGS) refers to the direct costs involved in producing goods or providing services that a company sells.

These costs include:

  • Raw materials
  • Direct labor expenses
  • Manufacturing overhead costs, and more.

Understanding COGS is essential because it enables you to:

  • Set an accurate sales price
  • Evaluate production efficiency
  • Effectively monitor and control COGS by keeping information up to date and ensuring accurate calculations.

Understanding COGS is crucial for investors, managers, and anyone focused on improving a company’s financial performance.

Streamline your accounting with Countman – book a consultation today and receive a tailored solution for your business.