oboloo Glossary

Sales Revenue – Cost Of Goods Sold

oboloo Glossary

Sales Revenue – Cost Of Goods Sold

Sales Revenue – Cost of Goods Sold (SG&A) is a critical measure of the success of any business. It is calculated by subtracting the cost of producing goods or services from the amount received when those goods and services are sold. For example, if you sell $10,000 worth of products and pay $7,000 in costs to make these products, then your Sales Revenue – Cost of Goods Sold (SG&A) is $3,000. Looking at this number over time can provide a better understanding of your business’s overall performance, as it indicates how much profit you make from each sale. Knowing this information can help you make informed decisions about pricing, production, and marketing strategies.