Financial Terms
COGS (Cost of Goods Sold)
COGS (Cost of Goods Sold): Direct costs to deliver the product/service.
In the data model
COGS is a concept in the GASP relationship graph.
Relationships
- Subscription incurs COGS (N:1). Delivering on subscriptions incurs costs (hosting, support, onboarding) that form the COGS basis for Gross Margin.
Related Terms
Other definitions in Financial Terms:
Operating Expenses (Opex)
Costs of running the business (excluding COGS).
EBITDA
Earnings before interest, taxes, depreciation and amortization.
Burn Rate
Net cash consumed per month.
Runway
Months until cash runs out at current burn rate.
DSO (Days Sales Outstanding)
Average days to collect payment after invoicing.
Bad Debt Rate
Percentage of revenue written off as uncollectable.