The adjusted cost of goods sold formula is a financial calculation used by businesses to determine their cost of goods sold (COGS). It takes into account the previous costs of producing and selling inventory, as well as any returns, discounts, or miscellaneous expenses associated with sales. By understanding your adjusted costs, you can assess the true profitability of your business and make more informed decisions about inventory and pricing. In short, the adjusted cost of goods sold formula is vital for giving yourself an honest look at how successful your business really is.