SupplyChain.tools
inventory

COGS (Cost of Goods Sold)

The direct cost of producing goods sold by a company, including materials and direct labor.

Cost of Goods Sold (COGS) is the direct cost attributable to producing or acquiring the goods a company sells, including materials, labor, and inbound freight. COGS is a key input to gross margin and inventory valuation and is reported on the income statement.