Cost of Goods Sold (CoGS) is an accounting term used to refer to the total amount of expenses associated with producing and selling a product. It includes the cost of raw materials, labor, manufacturing overhead, and other direct costs related to the production of goods or services. By tracking these costs from the beginning to end of a project, businesses are better able to keep their budgets in check and ensure that their products remain competitively priced in the market. Calculating CoGS is a vital part of good financial planning and management for any business.