Translation of "货物成本" in English

The term "货物成本" can be translated into English as "Cost of Goods".

Cost of Goods refers to the total expenses incurred by a business in the process of manufacturing or purchasing products that are intended for sale. This cost includes the direct costs associated with producing or purchasing the goods, such as raw materials, labor, and manufacturing overhead. It does not include indirect expenses like distribution costs or marketing expenses.

Calculating the Cost of Goods accurately is crucial for businesses to determine the profitability of their products and make informed pricing decisions. This metric also helps in assessing the efficiency of production processes and identifying areas for cost optimization.