The Cost of Goods Sold (COGS) plays a crucial role in the Pro Forma model as it is used to calculate the Gross Margin. It is subtracted from the Gross Revenue to determine the Gross Margin. The COGS represents the direct costs associated with the production of the goods sold by a company. This includes both direct labor costs used to produce the good and direct materials costs. It is an important figure for managers and investors as it is subtracted from revenue in income statements to calculate gross and operating profit.
Need to present the investment and reward opportunities of a new venture or project? Use our "Ultima...
Download model