Definition
Cost of goods sold
Everything that goes into producing an item for sale: materials used, packaging, and the labour to make it, plus any fees directly tied to the sale.
It deliberately excludes overhead such as rent, insurance and software, which is what separates it from a full production cost. Knowing both figures matters: one tells you whether a single sale is profitable, the other tells you whether the business is.
Tools that use this term
Product Cost Calculator
Add up what one handmade item actually costs to make, with the waste share and the overhead included.
Labor Cost Calculator
Put a figure on the hours a piece takes, with the prep, the finishing and the admin time that usually goes uncounted.
Profit Margin Calculator
See the difference between a margin and a markup on the same cost, and price from either one deliberately.