Cost of Goods Sold (COGS) Operating Expenses are business costs that are associated with the buying, stocking, and selling of goods. These expenses can range from inventory costs, freight and shipping costs, employee wages, and more. COGS OpEx helps businesses understand the cost-effectiveness of their goods and services; this is important when it comes to setting prices and deciding which products are profitable. By understanding how much money was spent on goods compared to how much was made in sales, companies can get a better idea of their bottom line.