Cost of Goods Sold (COGS)

Home » CMA Glossary Term » Financial Statements and Reporting » Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of goods sold by a company. This includes the cost of materials and labor directly used to create the product. COGS is subtracted from revenues to calculate gross profit and is a crucial metric in assessing a company’s financial performance. Understanding the COGS definition is essential for accurate financial reporting and analysis.

CMA Exam Academy 16-Week Accelerator Program