Bitget
Bitget

# GLOSSARY

Finance Dictionary : Cost of Goods Sold

Cost of Goods Sold

KEYTAKEAWAYS

Explore Cost of Goods Sold (COGS), the sum of direct expenses related to goods production or service delivery. Understand its significance in determining gross profit and its role in operational efficiency and pricing strategies.


CONTENT

DEFINITION

Cost of Goods Sold, often abbreviated as ‘COGS’, stands as a critical financial metric that encompasses the cumulative direct expenses associated with the production of goods or the provision of services. These direct costs involve expenses directly tied to the creation of a product, including raw materials, labor, and manufacturing costs, or the costs incurred in delivering a service.

 

COGS plays an integral role in determining a company’s gross profit, as it represents the portion of revenue that is directly consumed by the cost of production.COGS varies by industry and business model, and its calculation necessitates precision to offer a true representation of the costs linked to revenue generation.

 

Analyzing COGS provides insights into operational efficiency, cost management, and pricing strategies, making it an essential component of financial analysis and business decision-making.

 

More From CoinRank


DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

CoinRank Exclusive brings together primary sources from various fields to provide readers with the most timely and in-depth analysis and coverage. Whether it’s blockchain, cryptocurrency, finance, or technology industries, readers can access the most exclusive and comprehensive knowledge.


NEWSLETTER

SUBSCRIBE

CoinRank