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Knowing Your Numbers
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True COGS
True COGS
Build the real cost of a batch from the recipe up.
1.
What actually goes into COGS
How a manufacturer's cost of goods sold is really built — the three buckets that make up a product's cost, and the everyday expenses that don't belong in it.
2.
Landed cost: what a pound of flour really costs you
Why a material's invoice price is not what it costs you, and how to add freight, duties, and handling to get the landed cost your COGS is really built on.
3.
Build true COGS from your recipes
How to roll every material's landed cost, plus the labor and overhead, up through a recipe — including the components you make yourself — into a cost per batch and per unit you can stand behind.
4.
Watch your cost move as input prices swing
How to keep a product's cost current as material prices move, read the margin hit before your P&L ever shows it, and catch any product that input inflation has quietly pushed below its cost floor.