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Anonymous A

on Aug 16, 2021

Global

COGS levers

What are the factors that affect COGS? Raw materials, production costs like utilities, ..what else? Does Distribution of goods count as COGS?

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Ian

Coach

on Aug 16, 2021

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

COGS is really any costs directly associated with making a product and getting it to the customer.

Raw materials
Parts
Attributable labor costs (i.e. not back-office)
Overhead costs, like utilities for the manufacturing site
Distribution costs