Calculating Cogs is a business term used to describe the costs associated with running an operations-heavy enterprise. These cogs include things like wages, taxes, material costs, and fixed costs such as rent and insurance premiums. Calculating cogs accurately helps businesses determine their pricing and make more informed decisions about how to allocate resources in order to achieve required profitability levels. By taking into account all of the factors that go into running a business, calculating cogs is an essential step for any organization hoping to stay competitive.