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.