COS, short for “cost of sales,” refers to the expenses incurred by a company in order to produce and sell its products or services. This includes the cost of raw materials, labor, and other direct costs associated with the production process. COS is an important metric for businesses as it directly impacts their profitability and can help determine the pricing of their products. It is often used in financial analysis to assess the efficiency and effectiveness of a company’s operations. In simpler terms, COS can be seen as the price a company pays to bring its goods or services to market.