COGS (Cost of Goods Sold): definition, example, and why it matters
Includes parts, materials, and direct labor. Excludes overhead like rent and admin salary. Revenue − COGS = Gross Profit.
- Short definition. Direct costs of producing the goods or services you sold.
- Category. COGS (Cost of Goods Sold) is a accounting term used by service businesses when billing customers.
- How Glo Invoice handles it. Glo Invoice builds cogs (cost of goods sold) into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does cogs (cost of goods sold) mean?
Includes parts, materials, and direct labor. Excludes overhead like rent and admin salary. Revenue − COGS = Gross Profit.
