Cogs is short for cost of goods sold, or COGS. It’s a term used in business to refer to the total cost associated with producing and selling a product or service, including labor, raw materials, overhead costs, etc. In other words, it’s the total outlay associated with bringing a product or service to market. Knowing your COGS can help you determine the profit potential of a product or service so that you can adjust pricing accordingly. It’s an essential part of understanding your business’s financial picture.