Inventory Cost of Goods Sold (COGS) is a key measure used in the business world to quantify the cost of goods sold by a company during a given period. It is calculated by taking the sum total of all inventory costs incurred during the period, such as raw materials, labor, and overhead costs. These costs can then be compared against the value of goods sold, providing a snapshot of how much money was made from each item. Understanding COGS helps organizations budget for expenses, allocate resources more effectively, and ensure that profits are maximized.