People often use these terms interchangeably, but there’s a subtle difference. The cost of goods sold is specifically about the direct costs of producing goods or buying inventory that you sell. The cost of sales is a bit broader. It includes COGS but also throws in other costs directly related to making money, like direct labour and overhead.
The cost of sales covers more ground than COGS. It’s about the expenses involved in getting your product or service to the customer.
Understanding these differences can help you get a clearer picture of where portugal phone number list your money’s going and how efficiently you’re running your business.
Calculating the cost of goods gives you a clear picture of the expenses associated with your products. This helps you to plan your business strategies accordingly to gain profit. Maintaining a competitive edge and optimising profitability through efficient COGS management requires constant observation and adjustment to internal processes and market conditions. Always keep a watch out for your cost of goods sold to make improvements to your business operations.