Formula

Beginning Inventory + Purchases - Ending Inventory

Services

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Role

Manager, VP / Director

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.

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