cogs means

cogs means is an acronym for “Cost of Goods Sold,” a key financial metric used by businesses to measure the direct costs associated with producing goods that are sold during a given period. COGS includes expenses such as materials, labor, and manufacturing costs. It is a critical component in determining a company’s gross profit, as it is subtracted from revenue to calculate how much profit is made from the core operations of the business. Understanding COGS helps businesses set appropriate pricing strategies, manage expenses, and track profitability.