Cost of Goods Sold (COGS) As a Percentage of Revenue Benchmarks, Definition & Measurement Details

OpsDog KPI Reports Cost of Goods Sold (COGS) as a Percentage of Revenue Benchmarks, Definition & Measurement Details

SAMPLE CONTENT & DATA

2017 Edition www.opsdog.com [email protected] 844.650.2888 Cost of Goods Sold (COGS) as a Percentage of Revenue Definition & Measurement Details

What is Cost of Goods Sold (COGS) as a Percentage of Revenue? The cost of goods sold (COGS) to customers divided by total dollar amount of sales generated over the same period of time. COGS typically includes material costs, production/manufacturing costs (i.e., labor costs), and the cost of carrying the inventory before it is sold.

Why should this KPI be measured? How is this KPI calculated? Cost of Goods Sold (COGS) as a Percentage of Revenue measures the Two values are used to calculate this KPI: (1) the total Cost of Goods Sold direct cost attributed to the production of products sold (i.e., materials (COGS), and (2) the dollar amount of revenue generated by the company and labor) relative to the total revenue generated by the company over over the same period of time. COGS includes the cost of the materials the same period of time. A high value for this metric can be indicative used in creating the good along with the direct labor costs used to of inefficient procurement and/or production/manufacturing processes. produce the good. Do not include indirect expenses such as distribution Such inefficiencies can drive COGS to unmanageable levels, prevent costs and sales force costs in the numerator. customers from buying such expensive merchandise and expose the company to financial risks ABRIDGEDby preventing the company from paying its CONTENT liabilities on time. Purchase to View Full Definition & Measurement Details!

Related KPIs Formula Cost of Goods Sold (COGS), Labor Expense as a Percentage of COGS, (Cost of Goods Sold / Revenue Generated) * 100 Raw Materials Expense as a Percentage of COGS

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Cost of Goods Sold (COGS) as a Percentage of Revenue (Cost of Goods Sold / Revenue Generated) * 100

Characteristics of High Performers • KPIs are well-defined, tracked and tied to performance reviews • Robust self-service options for customer (online FAQs, etc.) • Agents cross-trained to handle and resolve multiple call types • KPIs are well-defined, tracked and tied to agent performance reviews SAMPLE CONTENTAvg (XX) Purchase to View Actual Benchmarking Data! Sample Size: XX KPI Type: XX Unit: XX Is High or Low Best?: XX High Performers o Performers

How to read this chart: This chart summarizes the performance gaps between high (Top 5%), mid (Median) and low (Bottom 5%) performers for this Key Performance Indicator (KPI). For example, the column labeled “Top 5%” represents a company that outperformed 95% of the peer group observed for this metric.

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