Cost of Merchandise Sold (also known as Cost of Goods Sold or COGS) is an accounting measure that tracks the total amount paid for goods sold to customers. In other words, it’s the cost of getting products from the manufacturer to your inventory, and then onto the shelves and into the hands of your customers. It’s important for any business that sells products to track their COGS, as it’s a key metric for tracking financial health and performance. Knowing this information can help you determine pricing strategies, evaluate inventory levels, and decide on the best ways to remain competitive in the marketplace. Ultimately, understanding your COGS can lead to greater profitability and success!