Cost of goods sold (COGS) expense represents the direct cost of producing the goods or services a company offers. This expense includes materials, labor, and overhead associated with manufacturing and assembling products. By deducting COGS from your total sales revenue, you can calculate gross profit — the income that ultimately drives business growth. So, to keep your bottom line healthy, make sure you track your COGS expenses closely and accurately!
Want to find out more about procurement?
Access more blogs, articles and FAQ's relating to procurement