Cost of Goods Sold

Cost of Goods Sold (COGS) is the total value of the goods or services sold by a company during a certain time period.

Also known as “cost of sales,” this metric is used to indicate how much it cost you to produce the products or services you sold within the given timeframe. This includes any direct or indirect expenses for the production of each product or service sold.

To calculate your business’s gross profit, deduct the cost of goods sold from your total sales revenue.