Cheat Sheet: Determining What COGs Is and Is Not

In this guide we'll review what is and what is not considered COGs for a SaaS business. Paired with gross margin (GM), cost of goods (COGs) tells companies and investors in a single glance about the profitability of revenues, SaaS business model purity, and company efficiency.

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However—against the backdrop of ever-changing reporting guidance—easily distinguishing COGs from OPEX is anything but seamless or intuitive today.