The Schedule For Cost of Goods Sold is an important business tool that provides insight into a company’s profitability. This statement tracks the costs associated with producing and selling goods or services, such as the cost of raw materials, overhead expenses, manufacturing labor, and packaging and distribution. By keeping track of these costs, companies can manage their bottom line more effectively. It also provides key information to make informed decisions about pricing and inventory management. In short, it helps businesses understand how much it costs to create a product or serve a customer, and how much they are actually making in profit.