Cost of Goods Sold (COGS) Analysis
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Category:  
Analytical

Measures the direct costs of producing goods sold by a company.

What it Measures ?

How much it costs us to produce what we sell.

Relevant StakeHolders 

Product Manager, Finance Analyst

In-depth Use Case / Real-world Example

COGS Analysis evaluates the direct costs incurred in producing the goods sold, including raw materials, labor, and manufacturing expenses. Monitoring COGS helps identify cost-saving opportunities, such as improving production efficiency or negotiating better supplier terms. Reducing COGS improves gross profit margins.

KPI Definition

Business Value

Movement Direction

Sample Formula

Total COGS by Product, Department, or Period

Should Aim For
1
2
3
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