COGS 101: Understanding the Cost of Goods Sold for Your Business

Knowing your Cost of Goods Sold (COGS) is essential to pricing your products, managing profit margins, and making informed financial decisions. COGS 101 is a practical, beginner-level course designed to help new business owners break down and understand this key component of business accounting. In this course, you’ll learn what COGS includes (and what it doesn’t), how to calculate it correctly, and how it directly impacts your gross profit and tax reporting. Whether you sell physical products or offer a combination of goods and services, this course will give you the tools to track costs accurately and set pricing that ensures profitability. Through real-life examples, worksheets, and step-by-step guidance, you’ll gain a clear understanding of how to apply COGS principles in your day-to-day operations.