Cost of Goods Sold (COGS) — The direct costs associated with producing or delivering a product or service. In a physical product context, COGS includes the cost of materials, manufacturing, and fulfillment. In a SaaS or diagnostics context, it can include the cost of lab processing, kit components, shipping, and any third-party services directly tied to delivering the product to the customer. Understanding COGS is important because it directly impacts gross margin — the difference between revenue and what it costs to deliver that revenue.
