Cost of Goods Sold

Measures the actual profit margin on products and services by analyzing how costs such as labour or shipping affect your profit margin.

Retail KPI Examples | Cost of Goods Sold

The Cost of Goods Sold KPI measures the actual profit margin on products and services by analyzing how costs such as labour or shipping affect your profit margin. This KPI is instrumental in determining the markup percentage for products and can be a key component in a pricing war with your competition. It's important to remember that even if product is flying off the shelves, you still need to make profit on all that product.

Formula

Beginning Inventory + Purchases - Ending Inventory

Services

FreshBooks Dashboard | Freshbooks logo Oracle Sales Cloud Dashboard | Oracle logo PipelineDeals Dashboard | PipelineDeals logo Salesforce Dashboard | Salesforce logo Shopify Dashboard | Shopify logo

Role

Manager, VP / Director

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