Cost of Goods Sold (or COGS) is the total cost associated with providing services to customers. It is one of the major expenses incurred by service businesses, and it can have a significant impact on your overall profitability. This cost typically includes the direct costs associated with producing and delivering the service as well as any indirect costs related to staff and equipment used in production and delivery. Understanding and properly accounting for these costs is essential for any business that provides services to customers. With an accurate understanding of this cost, you can make informed decisions about pricing, staffing, and other operational considerations.