Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good.

For accounting and tax purposes, these are listed under the entry line-item cost of goods sold (COGS). This reduction can be a major benefit to companies in the manufacturing or mining sectors ...

COGS is calculated using direct production costs, excluding indirect expenses. Investors use COGS to assess gross profit: Gross Profit = Revenue - COGS. Lowering COGS while maintaining or ...

Cost of goods sold, also called cost of sales, often is the largest expense a business incurs. Understanding what happens to net operating income when cost of goods sold increases is critical for ...

Think you have no choice but to raise your prices on your most important customers? Good news: there’s a lot more you can do to flip your P&L in your favor and build your relationships with your ...