COGS Credit or Debit, otherwise known as the Cost of Goods Sold Credit or Debit, is an accounting method used to record the financial performance of a business. The core concept of this method is to credit inventory expenses when they are purchased and debit them when they are sold. By doing so, expenses associated with products can be tracked accurately, giving businesses a more detailed view into their overall profitability. This helps them make informed decisions about pricing, inventory management, and many other aspects of running a successful business.