Cost of goods sold?

Cost of goods sold (COGS) is the direct costs associated with producing or purchasing the goods that a company sells during a specific period. This includes the cost of materials, labor, and overhead expenses directly related to the production of goods. COGS is an important metric for businesses as it helps determine the profitability of their products and overall financial performance.

Cost of goods sold (COGS) represents the direct costs incurred by a company in producing the goods it sells. It is calculated by adding the cost of raw materials, direct labor, and manufacturing overhead. COGS is an important metric used to determine a company's profitability and is reported on the income statement. Understanding COGS can provide valuable insights into a company's operations and financial performance.