Total Cost Of Supply Definition

In business, the total cost of supply (COTS) is the total price that a company pays to its suppliers for goods and services. It includes the cost of materials, labor, and other expenses incurred in the production of goods and services. The total cost of supply can be divided into two categories: direct costs and indirect costs. Direct costs are those that are directly related to the production of goods or services, such as materials and labor. Indirect costs are those that are not directly related to the production of goods or services, such as overhead expenses.