COGS
Cost of Goods Sold. What it directly costs to make what you sell. The line between COGS and overhead is where accountants earn their keep and arguments are born.
Heard in the wild
“Materials spiked, COGS jumped, and the margin conversation got tense.”
Tone check: Technical
Precise accounting term. If you're arguing about what counts as COGS, you're arguing about someone's bonus.