Cost of Goods Sold (COGS) is a crucial component of any business, as it represents the total cost of producing and selling goods. This figure is important for many reasons; from informing pricing decisions to helping businesses gauge their profit margins. COGS normal balance consists of all the expenses associated with selling goods, such as materials, labour costs, freight, shipping, and more. Knowing what these figures are makes it easier for businesses to make strategic decisions that will lead to long-term success. When looking at your company’s performance, it’s essential to consider the COGS normal balance to ensure you’re making sound financial moves.