Sales Cost of Goods Sold (COGS) is a business term used to refer to the direct costs associated with selling goods or services. This can include production costs, labour, delivery fees, and any other expenses that are necessary for the sale of a product or service. COGS is an important metric in understanding the profitability of businesses, as it allows companies to accurately measure the costs of generating sales revenue. Knowing your COGS can help you to better manage your business’s bottom line and ensure sustainable growth.