Account Cost of Goods Sold (COGS) simply refers to the total amount spent on producing and selling an item – from the cost of raw materials and labor required to manufacture a product, to the cost of shipping and handling that product. In other words, COGS is the sum of all costs associated with bringing a product or service to market. As a business owner, it’s critical to accurately track and monitor your COGS in order to understand how much money you’re making, as well as how much of your margin you can invest back into your company. Keeping up with your COGS also tells you what kind of products are more profitable than others, giving you insight into where you should be focusing your efforts. With accurate tracking and analysis, COGS can help propel businesses forward towards their goals!