inventory cogs

inventory cogs refers to the cost of goods sold (COGS) associated with the inventory in a business. COGS is an essential financial metric that represents the direct costs incurred in producing or acquiring goods that are sold during a specific period. For businesses involved in manufacturing or retail, calculating COGS is crucial for determining profitability. The formula for COGS includes costs like raw materials, labor, and shipping. Properly tracking COGS helps businesses analyze their operational efficiency and pricing strategies to ensure sustainable profitability.