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Cost of goods sold (COGS) is a fundamental of a business, it requires the financial metric to measure the cost of producing an item or service sold by a company. The cost of goods sold in Quickbooks is calculated by tracking the expenses that are directly related to the production and sale of your products or services and if you are selling a product, you can think of it as the cost of the inventory that has been sold.You can also use QuickBooks to generate reports that help you understand your COGS and other financial metrics, So that you can make informed decisions about your business.
This gross profit figure shows how much money your business makes from selling its products before considering indirect operating expenses like marketing, administrative salaries, rent for office space, or utilities not related to production.COGS can also inform a proper price point for an item or service.
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