Cost of Goods Sold
Cost of goods sold (COGS) is a cost metric that measures the direct costs attributable to the production or security of the goods sold by a company.
In the case of a company that manufactures its products, COGS include the cost of the materials along with the direct labor costs used for production. For resellers, COGS is formed by the purchase costs of the goods.
COGS is used for financial balancing and has a strong direct impact on final business results.