Definition
Cost of Goods Sold (COGS) represents the direct costs associated with producing goods or services, including materials, labor, and manufacturing expenses.
Related Services
Accounting, cost management, and inventory optimization services help businesses track and manage COGS efficiently.
Problem and Application
High COGS can reduce profit margins. Businesses must optimize production processes, negotiate supplier pricing, and manage inventory efficiently to control costs.
Conclusion
Monitoring COGS is essential for profitability. Companies should implement cost-saving strategies to improve gross margins and financial performance.
