Understanding how to calculate the Cost of Goods Sold (COGS) is essential for any business owner. COGS represents the direct costs tied to producing goods that a company sells during a specific time.

In this example, your cost of goods sold for the month is $12,000, which represents the cost of clothing items that you sold during that period. Is COGS An Expense?

Major U.S. retailers have announced price hikes as a result of tariffs, and the cost of a handful of everyday goods and services has increased by 5% to 10% since Trump took office.