Calculating Cost of Goods Sold in Manufacturing

Efficiency is the lifeblood of any manufacturing company. If the processes and procedures work smoothly and efficiently, profitability is enhanced. And if they don’t, then profits may suffer.

But the necessity of efficiency isn’t confined to the factory floor and to production equipment. A manufacturer’s efficiency must be comprehensive in all areas in support of production as well. And nowhere is this more evident than in calculating inventory to assess the Cost of Goods Sold (COGS).

Timecode:
0:00 Introduction
0:40 What is Cost of Goods SOld?
2:27 Calculating Cost of Goods Sold
4:30 Why COGS is Important?
6:37 Areas of Caution in COGS
7:10 Properly Managing Cost of Goods Sold Calculations

#manufacturing #cogs #costofgoodssold #mrpeasy #manufacturingsoftware #manufacturingsystem #mrpsystem #mrpsoftware #mrp