Cost of Goods Sold (COGS)

Tags: Glossary

The cost of goods sold by a company, including the cost of materials, labor, and overhead.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is the Cost of Goods Sold (COGS) & how is it Calculated?

cost of goods sold” refers to the direct costs associated with producing and delivering goods to customers. This includes the cost of raw materials, labor, and transportation.


In shipping, the cost of goods sold specifically refers to the cost of producing and delivering the goods to the customer, which includes the cost of transportation from the manufacturer or supplier to the final destination. This cost is an important consideration for both the shipper and the carrier, as it can affect the pricing and profitability of the shipment. 


The cost of goods sold is calculated by subtracting the total cost of goods from the total revenue generated by the sale of those goods. This provides a measure of the profitability of the goods sold and can help businesses to make informed decisions about pricing, production, and transportation. 

Related Glossary terms


Cost of Goods and Insurance (C&I)


Transportation Mode

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