Cost of Goods Sold (COGS)

Overview

Cost of Goods Sold (COGS) refers to the direct costs associated with producing the goods that a company sells.

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COGS = The costs of materials and labor directly used to create the product

The data is imported directly from the shop platform and is stored in the Orders table.

Insights and Actions

Cost of Goods Sold (COGS) is essential for understanding the direct costs involved in producing goods sold by a company. Efficiently leveraging COGS data can guide strategic business decisions:

• Product Pricing Strategy: Assess COGS to ensure products are priced appropriately to maintain a healthy profit margin.
• Identify Cost Reduction Opportunities: Analyze COGS components to find areas where costs can be reduced without compromising quality.
• Optimize Inventory Management: Use COGS insights to improve inventory turnover rates and reduce inventory holding costs.
• Evaluate Supplier and Material Costs: Regularly review supplier contracts and material costs as part of COGS to negotiate better terms or seek cost-effective alternatives.

Example Use

Prompt

What is my COGS for last quarter?

Response