Cost of Goods refer to how much it costs you to acquired the specific product you are selling.
For Example:
If a product costs:
- $5 for supplies
- $100 for production setup fee (per 100 quantity)
- $10 shipping fee
The total cost of goods for a single unit of the product is $16.
Cost of Goods = $5 + ($100/100) + $10 = $16