Cost of Goods Sold Formula Manufacturing (COGSM) is a business metric used to track the cost associated with producing manufactured goods. It takes into account the cost of raw materials, labour, and overhead associated with making a product. COGSM provides a snapshot of the financial health of your business by measuring how efficient you are in terms of production costs. By keeping an eye on this metric, manufacturers can adjust their processes to be more efficient and profitable. As such, savvy businesses use COGSM as a way to better understand their expenses and ultimately make better decisions.