whats included in cogs

whats included in cogs refers to the cost of goods sold (COGS), which is the direct costs associated with producing goods that a company sells during a specific period. This includes the cost of materials, labor, and overhead directly related to production. For example, in manufacturing, COGS would include the cost of raw materials, factory labor, and other expenses directly tied to the production of finished goods. In retail, COGS includes the wholesale cost of the products purchased for resale. COGS is a key metric for calculating gross profit and understanding a company’s production efficiency.