Let's talk about COGS or cost of goods sold for a CPG, which is consumer packaged goods versus SaaS software as a service.
So these are the actual goods that you make or buy to resell and the labor of the customer support people who are helping you sell the product.
For a SaaS business, it's going to be typically cloud-based costs and labor of the employees helping you to deliver that service to customers.
Now, for breakdown, typically it's made up of raw material, direct labor, and overhead.
Freight in cost is part of COGS or the inventory, while freight out is part of operating expenses.
Let's talk about COGS or cost of goods sold for a CPG, which is consumer packaged goods versus SaaS software as a service.
So these are the actual goods that you make or buy to resell and the labor of the customer support people who are helping you sell the product.
For a SaaS business, it's going to be typically cloud-based costs and labor of the employees helping you to deliver that service to customers.
Now, for breakdown, typically it's made up of raw material, direct labor, and overhead.
Freight in cost is part of COGS or the inventory, while freight out is part of operating expenses.
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