what goes into cogs

what goes into cogs refers to the elements that make up the cost of goods sold (COGS) for a business. COGS includes all direct costs related to the production of goods sold by a company, such as raw materials, labor, and manufacturing expenses. For e-commerce businesses, understanding COGS is essential for determining profitability and pricing strategies. By calculating the total costs associated with creating and selling products, businesses can optimize their operations and ensure that they are earning a profit from each sale. Accurately tracking COGS is also important for tax purposes and financial reporting.