Cost of Finished Goods Inventory (COGI) refers to the total cost incurred in acquiring and/or producing finished goods that are ready for sale. This includes expenses incurred for direct labor, raw materials, supplies, and other costs related to the production process. The goal is to measure the cost associated with making a product so it can be accurately reflected in the price charged to customers. COGI is important in that it provides insight into how much a business spends in order to create its products and then, ultimately, make a profit. Companies must carefully track their COGI in order to ensure they remain profitable while providing their customers with quality products at competitive prices.