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Finance: What is COGS (Cost Of Goods Sold)? 40 Views


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What is COGS (Cost Of Goods Sold)? The COGS is the cost of materials and labor used to produce merchandise not including shipping and marketing. It is a crucial accounting item for factories and companies that make products for sale in order for analyzing budgeting, operational efficiency and other business factors.

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Transcript

00:00

Finance allah shmoop What is a cog sze or cost

00:05

of goods sold So yeah what are cogsa Yeah and

00:10

they're not the shoes your mom bought a penny on

00:13

saturday and it's not what the plumber had to remove

00:17

from your toilet consisting of hair clumps toenails and discarded

00:20

q tips Yeah that's clogs and we're talking cogsa Cost

00:24

of goods sold and note that there is no cobb's

00:28

which would be a cost of bads sold when you

00:31

have a business Selling things is pretty much always a

00:33

good well cog czar All the expenses the company needs

00:37

to pay to get their products out the door So

00:39

the company that makes your shoes might have to pay

00:42

for material to make those shoes the process of making

00:45

them the price tags and boxes for the shoes and

00:48

you know shipping delivery and everything else that it takes

00:51

to get the shoes to the store or no to

00:54

your doorstep Those costs all together are the cog sze

00:57

of your uh adidas or nikes or the cog sze 00:01:01.705 --> [endTime] of your clogs

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