Cost of Sales
What it costs you to directly deliver what you sell: materials, direct labour, subcontractors, shipping. Doesn't include overhead like rent or admin salaries.
- How it's worked out
- Materials + Direct Labour + Subcontractors + Freight
- Which way is better
- Lower is betterLower is better for cash.
- Also called
- COS, COGS, Cost of Goods Sold
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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