What should be taken into account when calculating COGS?
Posted: Sun Jan 19, 2025 9:27 am
When assessing the efficiency of traffic acquisition channels within the unit economics model, we often face the need to correctly calculate the margin from the attracted user flow. This indicator helps us to find out the margin received from each buyer (paying user) and each attracted user. To correctly assess the marginality of the attracted customer flow, we need to correctly calculate COGS. When we subtract COGS from revenue, we get the "Gross Profit" indicator (or "Gross Revenue"), which will later be needed to calculate the income per user.
What is COGS?
The English abbreviation COGS comes from the australia telegram number database abbreviation of the indicator “Cost Of Goods Sold” and reflects the cost of goods sold or services rendered.
The cost price includes both fixed and variable costs. The decision whether to include fixed costs associated with production (provision of services) in COGS or not depends on the cost accounting method adopted in the company. But this is no longer the responsibility of the marketing department. In an ideal world, accurate COGS data is provided by the finance department or accounting.
What is COGS?
The English abbreviation COGS comes from the australia telegram number database abbreviation of the indicator “Cost Of Goods Sold” and reflects the cost of goods sold or services rendered.
The cost price includes both fixed and variable costs. The decision whether to include fixed costs associated with production (provision of services) in COGS or not depends on the cost accounting method adopted in the company. But this is no longer the responsibility of the marketing department. In an ideal world, accurate COGS data is provided by the finance department or accounting.