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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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
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