The line on the profit and loss statement (P&L) that means "what the thing cost you to make or provide." For manufacturers, the cost of raw materials and manufacturing and manufacturing-related overhead. Also called cost of goods sold (COGS) and cost of sales.
the cost of the materials to produce the products you sell or the cost of the product you are going to resell; if you are a florist, the cost of goods may be the flowers, vase, ribbons to make up a bouquet; if you sell women's clothing, the cost of goods may be the cost of the sweater, dresses, sportswear, etc. you sell; cost of goods is a variable expense in that in changes depending on how much you are selling.