COGS
COGS, which stands for Cost of Goods Sold, is a basic business measure that shows how much money a company spends to make or buy the products they sell. Think of it as tracking all costs directly tied to getting products ready for sale - like buying materials, paying factory workers, or purchasing finished items for resale. It's different from other business costs like advertising or office rent. Companies use COGS to figure out their actual profits and make smart decisions about pricing and inventory management. You might also see it called "Cost of Sales" or "Cost of Revenue" in job descriptions and financial reports.
Examples in Resumes
Reduced COGS by 15% through improved supplier negotiations and inventory management
Implemented new tracking system that provided real-time Cost of Goods Sold monitoring
Managed monthly COGS reporting and analysis for retail division of $50M company
Typical job title: "Inventory Managers"
Also try searching for:
Where to Find Inventory Managers
Professional Associations
Online Communities
Example Interview Questions
Senior Level Questions
Q: How would you develop a strategy to reduce COGS while maintaining product quality?
Expected Answer: A strong answer should discuss analyzing supplier relationships, negotiating bulk purchases, improving inventory turnover, implementing efficient storage systems, and considering automation where appropriate, all while maintaining quality standards.
Q: How do you handle variances between projected and actual COGS?
Expected Answer: Look for explanations about analyzing root causes, implementing corrective actions, adjusting forecasting methods, and creating reporting systems to track variances in real-time.
Mid Level Questions
Q: What methods do you use to track and calculate COGS?
Expected Answer: Should mention inventory management systems, different calculation methods (FIFO, LIFO, weighted average), and regular reconciliation processes.
Q: How do you ensure accurate COGS reporting?
Expected Answer: Should discuss inventory counting procedures, documentation practices, system checks, and coordination between warehouse and accounting teams.
Junior Level Questions
Q: What is COGS and why is it important?
Expected Answer: Should explain that COGS represents direct costs of producing goods and its importance in determining profitability and pricing strategies.
Q: What basic elements are included in COGS calculations?
Expected Answer: Should list raw materials, direct labor, manufacturing overhead, and purchased inventory for resale as main components.
Experience Level Indicators
Junior (0-2 years)
- Basic inventory tracking
- Understanding of COGS components
- Data entry and basic reporting
- Knowledge of inventory software
Mid (2-5 years)
- Cost analysis and reporting
- Inventory optimization
- Supplier management
- Process improvement
Senior (5+ years)
- Strategic cost reduction
- Team management
- Budget forecasting
- Supply chain optimization
Red Flags to Watch For
- No understanding of basic accounting principles
- Lack of experience with inventory management software
- Poor attention to detail in calculations
- No knowledge of supply chain basics
Need more hiring wisdom? Check these out...
Cutting HR Costs Without Sacrificing Quality: A How-To for Savvy Executives
Beyond Borders: Mastering the Art of a Global Onboarding Calendar
Human Capital Operational Excellence: Unlocking Your Organization's Potential
